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Role of Remittance on Sustainable Economic Development in Developing and Emerging Economies: New Insights from Panel Cross-Sectional Augmented Autoregressive Distributed Lag Approach

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  • Shasnil Avinesh Chand

    (School of Accounting, Finance and Economics, The University of the South Pacific, Laucala Campus, Laucala Bay Road, Suva, Fiji
    School of Economics and Finance, Fiji National University, Suva P.O. Box 3722, Fiji)

  • Baljeet Singh

    (School of Accounting, Finance and Economics, The University of the South Pacific, Laucala Campus, Laucala Bay Road, Suva, Fiji)

Abstract

In this study, we aim to investigate the effects of remittance on sustainable economic development in 52 developing and emerging economies from 1996 to 2021. The study uses other variables such as real GDP per capita, total natural resource rents, globalization, and foreign direct investment. To achieve the mentioned objective, we apply a series of second-generation panel estimation approaches. These include CIPS unit root, Westerlund cointegration, cross-sectional augmented autoregressive distributed lag (CS-ARDL), and robustness using augmented mean group (AMG) and common correlated mean group (CCEMG). These methods are useful provided they are robust towards cross-country dependencies, slope heterogeneity, endogeneity, and serial correlation, which are disregarded in the conventional panel estimations. The empirical findings indicate that remittance accelerates sustainable economic development. Additionally, real GDP per capita and globalization also positively contribute towards sustainable economic development. However, total resource rents deteriorate sustainable economic development. This study offers key policy implications based on the empirical findings for the developing and emerging economies.

Suggested Citation

  • Shasnil Avinesh Chand & Baljeet Singh, 2024. "Role of Remittance on Sustainable Economic Development in Developing and Emerging Economies: New Insights from Panel Cross-Sectional Augmented Autoregressive Distributed Lag Approach," JRFM, MDPI, vol. 17(4), pages 1-19, April.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:4:p:153-:d:1374233
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