Remittances, Growth and Convergence: Evidence from Developed and Developing Countries
AbstractThis study investigates the relationship between workers’ remittances and economic growth by using 7 years average annual data of 113 countries from the period 2003 to 2009. Results indicate the positive and significant relationship between workers’ remittances and economic growth in sample of low income, middle income, high income and all countries. Results also show that the workers’ remittances are more contributing in high income countries as compare to low and middle income countries. Sensitivity analysis has been performed to test the consistency of initial results and confirms that the results are robust. Unconditional convergence results confirm the convergence in all categories. Results confirm that countries are coming together with respect to per capita income. Results of conditional convergence based on workers’ remittances model suggest the low and middle income countries are converging each other more rapidly. Conversely, results show that high income and all countries models are converging each other but at slower pace in conditional model with workers’ remittances as compare to unconditional model.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 39002.
Date of creation: 2012
Date of revision:
Remittances; Economic Growth; Cross Country Analysis;
Find related papers by JEL classification:
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- F24 - International Economics - - International Factor Movements and International Business - - - Remittances
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-05 (All new papers)
- NEP-CWA-2012-06-05 (Central & Western Asia)
- NEP-FDG-2012-06-05 (Financial Development & Growth)
- NEP-MIG-2012-06-05 (Economics of Human Migration)
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