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The impact of remittances on economic growth in small-open developing economies

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  • Ahortor, Christian R.K.
  • Adenutsi, Deodat E.

Abstract

The essence of this study is to verify the macroeconomic implications of cross-border remittances for economic growth prospects of small-open developing economies for the period, 1996-2006. A set of dynamic panel model, specified within the framework of Blundell-Bond Generalized Method of Moment (GMM) was empirically analyzed. Using annual panel data from 31 small-open developing countries from Sub-Saharan Africa, Latin America and the Caribbean, this paper argues that, contemporaneously, remittances contribute significantly to economic growth in small-open developing economies. Remittances, however, contribute more to long-run economic growth in Latin America and the Caribbean than to Sub-Saharan Africa. In dynamic terms, remittances retard economic growth, but with overall positive impact across these regions.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 37109.

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Date of creation: 14 Sep 2008
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Publication status: Published in Journal of Applied Sciences 18.9(2009): pp. 3275-3286
Handle: RePEc:pra:mprapa:37109

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Related research

Keywords: Remittances; Economic Growth; Panel Data; Latin America and Caribbean; Sub-Saharan Africa;

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References

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  1. de la Fuente, Alejandro, 2008. "Remittances and Vulnerability to Poverty in Rural Mexico," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) RP2008/17, World Institute for Development Economic Research (UNU-WIDER).
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Citations

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Cited by:
  1. 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.
  2. Syed Tehseen Jawaid & Syed Ali Raza, 2012. "Workers' remittances and economic growth in China and Korea: an empirical analysis," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing, Emerald Group Publishing, vol. 5(3), pages 185-193, December.
  3. Adenutsi, Deodat E., 2011. "Financial development, international migrant remittances, and endogenous growth in Ghana," MPRA Paper 29330, University Library of Munich, Germany.
  4. Jawaid, Syed Tehseen & Raza, Syed Ali, 2012. "Remittances, Growth and Convergence: Evidence from Developed and Developing Countries," MPRA Paper 39002, University Library of Munich, Germany.
  5. Tchantchane, A. & Rodrigues, G. & Fortes, P.C., 2013. "An Empirical Study on the importance of Remittance and Educational Expenditure on Growth: Case of the Philippines," Applied Econometrics and International Development, Euro-American Association of Economic Development, Euro-American Association of Economic Development, vol. 13(1), pages 173-186.

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