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Remittances Inflows and Fiscal Space in Receiving Countries

Author

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  • Sèna Kimm Gnangnon

    (World Trade Organization, Switzerland)

Abstract

The current article contributes to the literature on the effect of remittances inflows on public finance by examining the effect of remittances inflows on fiscal space. Using a sample of 109 receiving countries over the period 1980-2015, the analysis has shown that remittances inflows contribute to the expansion of fiscal space in relatively less developed receiving countries, while in advanced economies, these capital inflows lead to a shrinking of fiscal space. The analysis has additionally revealed that countries that experience a higher economic growth consistently experience an expansionary fiscal space effect of remittances inflows.

Suggested Citation

  • Sèna Kimm Gnangnon, 2020. "Remittances Inflows and Fiscal Space in Receiving Countries," Remittances Review, Remittances Review, vol. 5(2), pages 115-141, October.
    • Handle: RePEc:mig:remrev:v:5:y:2020:i:2:p:115-141
    DOI: https://doi.org/10.33182/rr.v5i2.941
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    File URL: https://journals.tplondon.com/rem/article/view/941/841
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    Cited by:

    1. Gnangnon, Sèna Kimm, 2023. "Productive capacities, structural economic vulnerability and fiscal space volatility in developing countries," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 45(3), pages 25-48.

    More about this item

    Keywords

    Remittances inflows; Fiscal Space; receiving countries; financial resources;
    All these keywords.

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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