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Economic Misery and Remittances in Jamaica

Author

Listed:
  • Das, Anupam

    (Mount Royal University, Canada)

  • Brown, Leanora

    (University of Tennessee at Chattanooga, U.S.A)

  • Mcfarlane, Adian

    (King’s University College at Western University, Canada)

Abstract

Jamaica is noted for having high remittance inflows (remittances) and economic misery, the latter often measured as a function of inflation and unemployment. We examine the relationship between economic misery and remittances in Jamaica from 1985 to 2019. To measure economic misery, we use the Okun and Hanke misery indices. We arrive at two key findings after applying vector error correction modelling, Granger causality testing, and controlling for potentially confounding factors. First, we find cointegration between remittances and our measures of economic misery. Second, there is bidirectional Granger causality between remittances and economic misery. One implication of our finding is that Jamaican policymakers could reduce economic misery through policies to increase remittance flows, such as providing more incentives for migrants to remit.

Suggested Citation

  • Das, Anupam & Brown, Leanora & Mcfarlane, Adian, 2023. "Economic Misery and Remittances in Jamaica," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 48(2), pages 33-52, June.
    • Handle: RePEc:ris:jecdev:0057
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    References listed on IDEAS

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    More about this item

    Keywords

    Remittances; Okun Misery Index; Hanke Misery Index; Jamaica; Cointegration;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

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