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The effect of remittances on democratic institutions

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  • Regan Deonanan
  • Kevin Williams

Abstract

Do remittances promote stronger democratic institutions in developing countries? We study the effect of workers’ remittances on the quality of democracy in developing countries, and examine how government spending mediates the effect of workers’ remittances on the quality of democratic institutions. Using a dynamic panel estimator on data from 133 developing countries over 1972–2012, we find that workers’ remittances improve the quality of democratic institutions. We also find that workers’ remittances are more effective in promoting democratic institutions in developing countries with low government spending.

Suggested Citation

  • Regan Deonanan & Kevin Williams, 2017. "The effect of remittances on democratic institutions," Applied Economics, Taylor & Francis Journals, vol. 49(5), pages 403-416, January.
    • Handle: RePEc:taf:applec:v:49:y:2017:i:5:p:403-416
    DOI: 10.1080/00036846.2016.1200180
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    References listed on IDEAS

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    1. World Bank, 2014. "Migration and Remittances," World Bank Publications - Reports 28433, The World Bank Group.
    2. Ethan Ilzetzki & Carmen M Reinhart & Kenneth S Rogoff, 2019. "Exchange Arrangements Entering the Twenty-First Century: Which Anchor will Hold?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(2), pages 599-646.
    3. repec:wbk:wbpubs:18237 is not listed on IDEAS
    4. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
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    Citations

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    Cited by:

    1. Ramkissoon, Benjamin & Deonanan, Regan, 2023. "How do remittances impact child mortality and are there preconditions?," Social Science & Medicine, Elsevier, vol. 333(C).
    2. Barkat, Karim & Mimouni, Karim & Alsamara, Mouyad & Mrabet, Zouhair, 2024. "Achieving the sustainable development goals in developing countries: The role of remittances and the mediating effect of financial inclusion," International Review of Economics & Finance, Elsevier, vol. 95(C).
    3. Mbiankeu Nguea, Stéphane & KAGUENDO, Ulrich Vianney Elisée, 2022. "Are growth effects of foreign capital significant for increasing access to electricity in Africa?," MPRA Paper 111604, University Library of Munich, Germany.
    4. Ọláyẹmí M. Ọlábìyí & Jasmine Alam, 2025. "Making money move: an analysis of corporate social responsibility activities in money transfer firms," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 11(1), pages 1-18, December.
    5. Williams, Kevin, 2024. "Remittances and government expenditures on human capital in developing countries," International Economics, Elsevier, vol. 178(C).
    6. Boburmirzo Ibrokhimov & Rashid Javed & Mazhar Mughal, 2023. "Migrants remittances and fertility in the Post-Soviet states," Post-Communist Economies, Taylor & Francis Journals, vol. 35(6), pages 574-596, August.
    7. Mbiankeu Nguea, Stéphane & Kaguendo, Ulrich Vianney Elisée & Noumba, Issidor, 2022. "Are growth effects of foreign capital significant for increasing access to electricity in Africa?," Energy Policy, Elsevier, vol. 168(C).
    8. Kamguia, Brice & Tadadjeu, Sosson, 2025. "Linking international financial inflows and access to drinking water, sanitation and hygiene in schools," International Economics, Elsevier, vol. 184(C).

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