Are the Direct and Indirect Growth Effects of Remittances Significant?
AbstractDevelopment economists believe that migrant workers’ remittances are an important source of funds for long run growth. Therefore, recent studies have investigated the growth effects of remittances and reached different conclusions. In many such studies the growth of output is simply regressed on both remittances and the channels through which remittances affect growth. Thus there is no distinction between the indirect and direct growth effects of remittances and such specifications may give unreliable estimates because of the correlation between the channels and remittances. In this paper we make a distinction between the indirect and direct effects of remittances. Our model is estimated with panel data of 40 high remittance recipient countries and a system GMM panel data estimation method.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 18641.
Date of creation: 15 Nov 2009
Date of revision:
Remittances; Growth; Panel Data; System GMM;
Other versions of this item:
- B. Bhaskara Rao & Gazi Mainul Hassan, 2012. "Are the Direct and Indirect Growth Effects of Remittances Significant?," The World Economy, Wiley Blackwell, vol. 35(3), pages 351-372, 03.
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-21 (All new papers)
- NEP-DEV-2009-11-21 (Development)
- NEP-FDG-2009-11-21 (Financial Development & Growth)
- NEP-MIG-2009-11-21 (Economics of Human Migration)
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