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Voting With The Wallet: The Response of Remittances to Political Systems

Author

Listed:
  • Farid Makhlouf

    () (ESC PAU BUSINESS SCHOOL)

  • Kamal Kasmaoui

    () (ESC PAU BUSINESS SCHOOL)

  • Johanna Edelbloude

    () (ESC PAU BUSINESS SCHOOL)

Abstract

Existing economic literature has clearly established that remittances represent a significant source of international capital flows for financing the development of countries of emigration. This paper investigates the empirical relationship between political systems and remittances. In a panel data study of 83 of developing countries from 2007 to 2016, 61 countries were classified as having a relatively advanced democratization process and 22 countries have as having a relatively weak democratization process. By using Generalized Method of Moments (GMM), the results show that countries with advanced democratic processes and economic freedom are more likely to benefit from remittances. Countries still in the process of democratization should accelerate the process in order to incorporate migration into their economic development.

Suggested Citation

  • Farid Makhlouf & Kamal Kasmaoui & Johanna Edelbloude, 2019. "Voting With The Wallet: The Response of Remittances to Political Systems," Economics Bulletin, AccessEcon, vol. 39(2), pages 1639-1650.
  • Handle: RePEc:ebl:ecbull:eb-19-00270
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    File URL: http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I2-P154.pdf
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    Cited by:

    1. Kamal Kasmaoui & Farid Makhlouf & Youssef Errami, 2020. "Does Trust in Home Countries Matter for Formal Remittances?," Working Papers hal-02886563, HAL.

    More about this item

    Keywords

    Democracy; Remittances; Panel GMM;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • Z1 - Other Special Topics - - Cultural Economics

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