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Do remittances promote economic growth in the Caribbean Community and Common Market?

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  • Lim, Sokchea
  • Simmons, Walter O.

Abstract

The paper investigates the economic importance of remittance flows to the Caribbean Community and Common Market (CARICOM). Utilizing panel cointegration tests, the results show that there is no evidence of a long-run relationship between remittances and real GDP per capita or investment but some evidence of a long-run relationship between remittances and consumption. This suggests that remittance inflows to the CARICOM region are used for consumption purposes rather than productivity improving spending.

Suggested Citation

  • Lim, Sokchea & Simmons, Walter O., 2015. "Do remittances promote economic growth in the Caribbean Community and Common Market?," Journal of Economics and Business, Elsevier, vol. 77(C), pages 42-59.
    • Handle: RePEc:eee:jebusi:v:77:y:2015:i:c:p:42-59
    DOI: 10.1016/j.jeconbus.2014.09.001
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Njangang, Henri & Nembot Ndeffo, Luc & Noubissi Domguia, Edmond & Fosto Koyeu, Prevost, 2018. "The long-run and short-run effects of foreign direct investment, foreign aid and remittances on economic growth in African countries," MPRA Paper 89747, University Library of Munich, Germany.
    2. Kristina Matuzeviciute & Mindaugas Butkus, 2016. "Remittances, Development Level, and Long-Run Economic Growth," Economies, MDPI, Open Access Journal, vol. 4(4), pages 1-20, December.
    3. Lesly Cassin, 2018. "The effects of migration and pollution externality on cognitive skills in Caribbean economies: a Theoretical analysis," EconomiX Working Papers 2018-30, University of Paris Nanterre, EconomiX.
    4. repec:scm:ecofrm:v:4:y:2015:i:2:p:2 is not listed on IDEAS
    5. repec:spr:jknowl:v:9:y:2018:i:3:d:10.1007_s13132-016-0377-5 is not listed on IDEAS
    6. repec:eco:journ1:2017-02-27 is not listed on IDEAS
    7. repec:ebl:ecbull:eb-18-00673 is not listed on IDEAS
    8. Hathroubi, Salem & Aloui, Chaker, 2016. "On interactions between remittance outflows and Saudi Arabian macroeconomy: New evidence from wavelets," Economic Modelling, Elsevier, vol. 59(C), pages 32-45.
    9. repec:eee:jmacro:v:52:y:2017:i:c:p:147-174 is not listed on IDEAS
    10. Kouni, Mohamed, 2016. "Remittances And Growth In Tunisia: A Daynamic Panel Analysis From A Sectoral Database," MPRA Paper 75478, University Library of Munich, Germany.
    11. repec:eee:wdevel:v:96:y:2017:i:c:p:438-450 is not listed on IDEAS
    12. repec:ksa:szemle:1720 is not listed on IDEAS
    13. Zouhair Aït Benhamou & Lesly Cassin, 2018. "The effects of migration and remittances on development and capital in Caribbean Small Island Developing States," EconomiX Working Papers 2018-41, University of Paris Nanterre, EconomiX.

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