Do Remittances Lead to a Public Moral Hazard in Developing Countries? An Empirical Investigation
AbstractThis article tests the hypothesis that in a context of ‘bad governance’, remittance inflows strongly reduce public spending on education and health in receiving countries; a phenomenon called the ‘public moral hazard problem’. Using a large sample of 86 developing countries over the period 1996--2007, and after factoring in the endogeneity of remittances, the results suggest a negative impact of remittances on public spending on education and health, when governance is bad in remittance-dependent economies.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Journal of Development Studies.
Volume (Year): 48 (2011)
Issue (Month): 8 (May)
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- Adolfo Barajas & Ralph Chami & Christian Ebeke & Sampawende J.-A. Tapsoba, 2012. "Workersâ€™ Remittances: An Overlooked Channel of International Business Cycle Transmission?," IMF Working Papers 12/251, International Monetary Fund.
- Christian Ebeke & Thierry Yogo Urbain, 2013. "Working Paper 185 - Remittances and the Voter Turnout in Sub-Saharan Africa: Evidence from Macro and Micro Level Data," Working Paper Series 989, African Development Bank.
- Thomas H.W. ZIESEMER, 2012.
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Eastern Journal of European Studies,
Centre for European Studies, Alexandru Ioan Cuza University, vol. 3, pages 37-59, December.
- Ziesemer, Thomas, 2008. "Worker remittances and government behaviour in the receiving countries," MERIT Working Papers 029, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Ziesemer, Thomas, 2012. "Worker remittances and government behaviour in the receiving countries," MERIT Working Papers 065, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
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