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Are There Significant Externality Effects of Remittances in Asian Economic Growth?

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  • Gazi M. Hassan
  • Shamim Shakur

Abstract

This article estimates the externality effects of remittances in a sample of Asian countries. According to Romer (1986) externality generated by education sector can raise nationwide productivity. Because a significant portion of remittances income is invested on education, remittances stock can also generate such externalities. Using a Romer type production function and with the aid of panel cointegration technique applied to the data, we find evidence in favour of a highly significant externality effects of remittances, although these estimates are small in magnitude.

Suggested Citation

  • Gazi M. Hassan & Shamim Shakur, 2018. "Are There Significant Externality Effects of Remittances in Asian Economic Growth?," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot GmbH, Berlin, vol. 64(2), pages 127-135.
    • Handle: RePEc:dah:aeqaeq:v64_y2018_i2_q2_p127-135
    DOI: 10.3790/aeq.64.2.127
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    References listed on IDEAS

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    More about this item

    Keywords

    Remittances; Externality Effects; Endogenous Growth; Panel Cointegration; group-mean panel dynamic OLS;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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