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Remittances and economic growth in Latin America and the Caribbean: The Impact of the human capital development

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  • Garcia-Fuentes, Pablo A.
  • Kennedy, P. Lynn

Abstract

Remittances are one source of external financing for developing countries that have been increasing in both size and importance as of late. However, the issue about the impact on economic growth from remittances is still opened for discussion. This paper adds to this discussion by investigating the impact of remittances on growth through human capital using a panel data analysis for a sample of 14 Latin American and Caribbean (LAC) countries during the period 1975-2000. The results indicate that remittances have a positive impact on economic growth in the representative countries from the LAC region; however, the realization of this impact holds only when the remittance receiving country has a minimum threshold of human capital stock.

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Bibliographic Info

Paper provided by Southern Agricultural Economics Association in its series 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia with number 46751.

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Date of creation: 2009
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Handle: RePEc:ags:saeana:46751

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Keywords: Remittances; Human Capital; Growth; Latin America and the Caribbean; International Development; International Relations/Trade; Labor and Human Capital;

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References

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Citations

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Cited by:
  1. Farid MAKHLOUF & Mazhar MUGHAL, 2011. "Remittances, Dutch Disease, and Competitiveness - A Bayesian Analysis," Working Papers 2011-2012_1, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Dec 2011.
  2. Bichaka Fayissa & Christian Nsiah, 2010. "Can Remittances Spur Economic Growth and Development? Evidence from Latin American Countries (LACs)," Working Papers 201006, Middle Tennessee State University, Department of Economics and Finance.
  3. Farid MAKHLOUF & Adil NAAMANE, 2013. "The Impact of Remittances on Economic Growth. The Evidence from Morocco," Working Papers 2013-2014_3, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Sep 2013.
  4. World Bank, 2012. "Bangladesh - Towards Accelerated, Inclusive and Sustainable Growth : Opportunities and Challenges, Volume 2. Main Report," World Bank Other Operational Studies 12121, The World Bank.
  5. Bichaka Fayissa & Christian Nsiah, 2012. "Financial Development and Remittances in Africa and the Americas: A Panel Unit-Root Tests and Panel Cointegration Analysis," Working Papers 201201, Middle Tennessee State University, Department of Economics and Finance.
  6. Giscard Assoumou Ella, 2013. "Impact of international income, prices and monetary shocks on real exchange rate in eight African economies: An empirical study," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 2(3), pages 41 - 54, September.
  7. Ziesemer, Thomas H.W., 2012. "Worker remittances, migration, accumulation and growth in poor developing countries: Survey and analysis of direct and indirect effects," Economic Modelling, Elsevier, vol. 29(2), pages 103-118.

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