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A panel data analysis of the growth effects of remittances


  • Rao, B. Bhaskara
  • Hassan, Gazi Mainul


Many development economists believe that remittances by the migrant workers are an important source of funds for long run growth. Therefore, recent studies have investigated the growth effects remittances in the recipient countries but reached different conclusions. This paper analyses the strength of these effects with a common data set with alternative specifications and estimation methods. Our results show that the direct growth effects of remittances are insignificant. However, remittances may have small indirect growth effects.

Suggested Citation

  • Rao, B. Bhaskara & Hassan, Gazi Mainul, 2011. "A panel data analysis of the growth effects of remittances," Economic Modelling, Elsevier, vol. 28(1), pages 701-709.
  • Handle: RePEc:eee:ecmode:v:28:y:2011:i:1:p:701-709 DOI: 10.1016/j.econmod.2010.05.011

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    References listed on IDEAS

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    More about this item


    Remittances; Growth; Panel data; System GMM;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance


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