IDEAS home Printed from https://ideas.repec.org/a/dug/actaec/y2018i7p101-119.html
   My bibliography  Save this article

The Role of Liquidity in the Remittances-Human Capital Development Nexus in Emerging Economies

Author

Listed:
  • Kunofiwa Tsaurai

    (University of South Africa)

  • Lindiwe Ngcobo

    (University of South Africa)

Abstract

The objectives of this paper are threefold: Firstly, to investigate the impact of remittances on human capital development. Secondly, to explore the influence of stock market liquidity on human capital development. Thirdly, to study the influence of the interaction between remittances and stock market liquidity on human capital development in emerging markets using panel data analysis. To a larger extent, migrants’ personal remittances had a positive impact on human capital development whilst stock market liquidity was found to have had a negative influence on human capital development. Though the results are not uniform across the three panel data analysis methods, the interaction between stock market liquidity and remittances had a negative effect on human capital development. The finding means that the presence of high stock market liquidity in emerging markets had a deleterious effect on remittances’ ability to enhance human capital development. The study therefore urges emerging markets to implement policies that keeps stock market liquidity at minimal levels in order to enhance migrant personal remittances’ impact on human capital development. Future studies should investigate other channels which facilitate migrant remittances’ influence on both human capital development and economic growth.

Suggested Citation

  • Kunofiwa Tsaurai & Lindiwe Ngcobo, 2018. "The Role of Liquidity in the Remittances-Human Capital Development Nexus in Emerging Economies," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 14(7), pages 101-119, DECEMBER.
    • Handle: RePEc:dug:actaec:y:2018:i:7:p:101-119
    as

    Download full text from publisher

    File URL: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/5118/4769
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dug:actaec:y:2018:i:7:p:101-119. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Daniela Robu (email available below). General contact details of provider: https://edirc.repec.org/data/fedanro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.