Impact of trade openness, remittances, capital inflows & financial development on income in Vanuatu
AbstractIn this study, using bounds approach and annual data for the period 1981-2008, the short and long-run effects of remittances and trade openness on income in Vanuatu are estimated. The results show trade openness and remittances having positive and significant effects, with no significant effects from financial development (FIN), foreign direct investment (FDI), and official development aid (ODA). FDI and ODA in this sense behave somewhat differently than remittances. Therefore a greater liberalization of goods and services market in general and short-term temporary movements of people in particular to boost remittances inflows and improving the overall institutional infrastructure is put forward as priority policy measures.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 33221.
Date of creation: 30 Dec 2010
Date of revision:
Remittances; trade; economic growth; FDI; financial sector development; ODA; bounds test; Vanuatu;
Find related papers by JEL classification:
- N17 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Africa; Oceania
- F24 - International Economics - - International Factor Movements and International Business - - - Remittances
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