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Do remittances impact on entrepreneurial activities? Evidence from a panel data analysis

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  • Aisha Nanyiti
  • John Sseruyange

Abstract

Although remittances contribute towards improving the livelihoods of the recipients through income and consumption smoothing, evidence pointing to how they impact on entrepreneurial activities at cross country level has remained scanty. In this paper, we use dynamic panel procedures on data from 63 countries for the years 1981–2011, to examine the impact of remittances on entrepreneurial activities. Our main results indicate that remittances positively influence entrepreneurial activity, but this effect is more pronounced in low-income countries. From a policy perspective, our results suggest that a sustainable contribution of remittances to entrepreneurial activity especially in developing countries requires an unconstrained flow of remittances, and this can be ensured through building strong bilateral relationships and reducing bureaucratic procedures related to migration.

Suggested Citation

  • Aisha Nanyiti & John Sseruyange, 2022. "Do remittances impact on entrepreneurial activities? Evidence from a panel data analysis," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 31(4), pages 553-565, May.
    • Handle: RePEc:taf:jitecd:v:31:y:2022:i:4:p:553-565
    DOI: 10.1080/09638199.2021.1995466
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    Cited by:

    1. Romano Piras, 2023. "Remittances, economic complexity, and new firms’ creation: empirical evidence from a large sample of countries," Economic Change and Restructuring, Springer, vol. 56(4), pages 2557-2600, August.
    2. Comlanvi Martin Konou, 2023. "Entrepreneurial Risk and Digital Financial Inclusion: A Cross‐Country Analysis," Economic Papers, The Economic Society of Australia, vol. 42(3), pages 267-281, September.

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