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Macroeconomic impact of remittances on output growth: Evidence from Turkey

Author

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  • AYSIT TANSEL

    () (Department of Economics, Middle East Technical University, Ankara, Turkey and Institute for Study of Labor (IZA), Bonn, Germany.)

  • PINAR YASAR

    () (State Planning Organization, Ankara, Turkey)

Abstract

This study estimates a Keynesian simultaneous, dynamic macro-econometric model to investigate the impact of remittances on key macro variables such as consumption, investment, imports and income in Turkey. The estimated impact and dynamic multi-pliers indicate that impact of remittances on consumption, imports and income are all positive and reduce gradually while that on investment wears out in the second year. The impact multiplier for income implies a substantial increase in income due to remittances through the multiplier process. The remittances-induced output growth rate is highest during the early 1970s and the early 1980s, but negligible during the other years.

Suggested Citation

  • Aysit Tansel & Pinar Yasar, 2010. "Macroeconomic impact of remittances on output growth: Evidence from Turkey," Migration Letters, Transnational Press London, UK, vol. 7(2), pages 132-143, October.
  • Handle: RePEc:mig:journl:v:7:y:2010:i:2:p:132-143
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    Cited by:

    1. Antonio Di Paolo & Aysit Tansel, 2015. "Returns to Foreign Language Skills in a Developing Country: The Case of Turkey," Journal of Development Studies, Taylor & Francis Journals, vol. 51(4), pages 407-421, April.
    2. Inna Čabelková, 2014. "Cultural values in international migration and remittances," International Economics Letters, Transnational Press London, UK, vol. 3(2), pages 59-68, October.
    3. Farid MAKHLOUF & Adil NAAMANE, 2013. "The Impact of Remittances on Economic Growth: The Evidence from Morocco," Working Papers 2013-2014_3, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Sep 2013.
    4. Farid MAKHLOUF & Florent DEISTING & Charlotte FONTAN SERS, 2015. "Transferts de fonds, stabilité politique et croissance économique dans les pays de l’ex URSS," Working Papers 2014-2015_9, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Apr 2015.
    5. Anupam Das & Murshed Chowdhury, 2011. "Remittances and GDP Dynamics in 11 Developing Countries: Evidence from Panel Cointegration and PMG Techniques," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(42), pages 3-23, December.
    6. Mahalia Jackman, 2014. "A Note on the Labor Market Effects of Remittances in Latin American and Caribbean Countries: Do Thresholds Exist?," The Developing Economies, Institute of Developing Economies, vol. 52(1), pages 52-67, March.

    More about this item

    Keywords

    Remittances; Dynamic Model; Remittances-Induced Output Growth;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

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