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Remittances and Economic Growth: Larger Impacts in Smaller Countries?

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  • Simon Feeny
  • Sasi Iamsiraroj
  • Mark McGillivray

Abstract

This paper examines the impact of remittances on economic growth in Small Island Developing States (SIDS). Results from variants of an empirical model suggest that while, on average, there is at best no association between remittances and growth in developing countries, there is a positive association between these variables in SIDS. This finding holds for SIDS in sub-Saharan Africa and the Pacific but not for those in Latin America and the Caribbean. Relationships between remittances, economic volatility, and household labour supply are offered as reasons for these findings.

Suggested Citation

  • Simon Feeny & Sasi Iamsiraroj & Mark McGillivray, 2014. "Remittances and Economic Growth: Larger Impacts in Smaller Countries?," Journal of Development Studies, Taylor & Francis Journals, vol. 50(8), pages 1055-1066, August.
    • Handle: RePEc:taf:jdevst:v:50:y:2014:i:8:p:1055-1066
    DOI: 10.1080/00220388.2014.895815
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    References listed on IDEAS

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    1. Ralph Chami & Connel Fullenkamp & Samir Jahjah, 2005. "Are Immigrant Remittance Flows a Source of Capital for Development?," IMF Staff Papers, Palgrave Macmillan, vol. 52(1), pages 55-81, April.
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    4. 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).
    5. David Roodman, 2006. "How to Do xtabond2," North American Stata Users' Group Meetings 2006 8, Stata Users Group.
    6. Evans Jadotte, 2009. "International Migration, Remittances and Labour Supply: The Case of the Republic of Haiti," WIDER Working Paper Series RP2009-28, World Institute for Development Economic Research (UNU-WIDER).
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