Remittances: Dutch disease or export-led growth?
AbstractThe literature on remittances and growth has thus far established a positive link between remittances and overall economic growth in recipient countries. We identify the main transmission channel through which remittances seem to exert their growth-enhancing effects: the 'export-led growth' channel using a methodology that exploits both cross-country and within-country cross-industry variation, and correcting for the endogeneity of remittances by constructing a set of external instruments. We find that remittances are conducive to the relative growth of exporting industries within teh manufacturing sector of recipient economies, contrary to what standard Dutch disease theory suggests. In doing so, we control for the potential complementarity effect between migrant networks and international trade.
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Bibliographic InfoPaper provided by Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford in its series OxCarre Working Papers with number 057.
Date of creation: 2011
Date of revision:
Remittances; manufacturing; export-led growth; Dutch disease; migrant networks;
Find related papers by JEL classification:
- F2 - International Economics - - International Factor Movements and International Business
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-03-05 (All new papers)
- NEP-DEV-2011-03-05 (Development)
- NEP-FDG-2011-03-05 (Financial Development & Growth)
- NEP-INT-2011-03-05 (International Trade)
- NEP-MIG-2011-03-05 (Economics of Human Migration)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Edwards, Alejandra Cox & Ureta, Manuelita, 2003. "International migration, remittances, and schooling: evidence from El Salvador," Journal of Development Economics, Elsevier, vol. 72(2), pages 429-461, December.
- Mohaddes, K. & Raissi, M., 2011.
"Oil Prices, External Income, and Growth: Lessons from Jordan,"
Cambridge Working Papers in Economics
1164, Faculty of Economics, University of Cambridge.
- Mehdi Raissi & Kamiar Mohaddes, 2011. "Oil Prices, External Income, and Growth: Lessons from Jordan," IMF Working Papers 11/291, International Monetary Fund.
- 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.
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