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Remittances, Governance and Economic Growth: Empirical Evidence from MENA Region

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  • Wadad Saad
  • Hassan Ayoub

Abstract

In this study we examine the effects of remittances and governance on economic growth in ten MENA countries. We choose these countries because they have relatively stable political situations. Using annual data from the World Bank over the period 2002-2017, we estimate panel autoregressive distributed lag (ARDL) models due to the existence of mixed levels of integration among series involved in this study. Control variables such as gross capital formation, consumption per capita and openness among others are integrated in these models. A governance composite is computed using the 6 governance indicators from the world bank. These indicators are used individually in different ARDL models with their interactions with the remittances to explore their impact on economic growth. The findings indicate a negative impact of the remittance on economic growth in the quasi-totality of the models. However, while governance composite shows a positive impact on economic growth, taking into consideration the dimensions of governance leads to conflicting results.

Suggested Citation

  • Wadad Saad & Hassan Ayoub, 2019. "Remittances, Governance and Economic Growth: Empirical Evidence from MENA Region," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(8), pages 1-1, August.
    • Handle: RePEc:ibn:ijefaa:v:11:y:2019:i:8:p:1
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    1. Ibrahim Ahamada & Dramane Coulibaly, 2013. "Remittances And Growth In Sub‐Saharan African Countries: Evidence From A Panel Causality Test," Journal of International Development, John Wiley & Sons, Ltd., vol. 25(3), pages 310-324, April.
    2. Aga, Gemechu Ayana & Soledad Martinez Peria, Maria, 2014. "International remittances and financial inclusion in Sub-Saharan Africa," Policy Research Working Paper Series 6991, The World Bank.
    3. Ross Levine, 1997. "Financial Development and Economic Growth: Views and Agenda," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 688-726, June.
    4. Robert E.B. Lucas, 2005. "International Migration and Economic Development," Books, Edward Elgar Publishing, number 3826.
    5. Juthathip Jongwanich, 2007. "Workers’ Remittances, Economic Growth and Poverty in Developing Asia and the Pacific Countries," MPDD Working Paper Series WP/07/01, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    6. Adams, Richard H. Jr., 2003. "International migration, remittances, and the brain drain ; a study of 24 labor exporting countries," Policy Research Working Paper Series 3069, The World Bank.
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    Cited by:

    1. Kabiru Kamalu & Wan Hakimah Binti Wan Ibrahim, 2023. "Conditional Effect of Environmental Degradation and Institutional Environment on Human Development in Developing Countries: Evidence from Method of the Moment-Quantile Regression with Fixed Effect," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 667-677, September.
    2. Akanbi, Sa’ad Babatunde & Yusuf, Abdulfatai Adekunle, 2024. "Governance Quality and Remittances in Nigeria: An Empirical Investigation," African Journal of Economic Review, African Journal of Economic Review, vol. 12(01), March.

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    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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