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Remittance Inflows and Export Complexity: New Evidence from Developing and Emerging Countries

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  • Mohamed Saadi

Abstract

Recent research highlights the importance of both migrant remittances and export complexity for understanding how economic development differs across developing countries. We integrate theories from both research streams to propose that remittances enhance export complexity in developing and emerging countries by encouraging business investment and entrepreneurship. We, then, document broad sample statistical evidence related to that proposal in regression analyses of remittance effects on export complexity in a sample of developing countries observed from 2002–2014. Our empirical results indicate that remittances generally and remittances used for investment purposes are positively associated with export complexity across a range of model specifications and estimation strategies.

Suggested Citation

  • Mohamed Saadi, 2020. "Remittance Inflows and Export Complexity: New Evidence from Developing and Emerging Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 56(12), pages 2266-2292, December.
  • Handle: RePEc:taf:jdevst:v:56:y:2020:i:12:p:2266-2292
    DOI: 10.1080/00220388.2020.1755653
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    Cited by:

    1. Avom, Désiré & Keneck-Massil, Joseph & Njangang, Henri & Nvuh-Njoya, Youssouf, 2022. "Why are some resource-rich countries more sophisticated than others? The role of the regime type and political ideology," Resources Policy, Elsevier, vol. 79(C).
    2. Ridha Nouira & Sami Saafi, 2022. "What Drives the Relationship Between Export Upgrading and Growth? The Role of Human Capital, Institutional Quality, and Economic Development," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 1944-1961, September.
    3. Brice Kamguia & Sosson Tadadjeu & Clovis Miamo & Henri Njangang, 2022. "Does foreign aid impede economic complexity in developing countries?," International Economics, CEPII research center, issue 169, pages 71-88.
    4. Bucevska Vesna, 2022. "Impact of Remittances on Economic Growth: Empirical Evidence from South-East European Countries," South East European Journal of Economics and Business, Sciendo, vol. 17(1), pages 79-94, June.
    5. Njangang, Henri & Asongu, Simplice & Tadadjeu, Sosson & Nounamo, Yann, 2021. "Is financial development shaping or shaking economic sophistication in African countries?," MPRA Paper 110132, University Library of Munich, Germany.
    6. Gnangnon, Sèna Kimm, 2023. "Duration of membership in the world trade organization and investment-oriented remittances inflows," The Quarterly Review of Economics and Finance, Elsevier, vol. 88(C), pages 258-277.
    7. Brice Kamguia & Manuella Ndjakwa & Sosson Tadadjeu, 2023. "Does infrastructural development foster export upgrading in Africa?," African Development Review, African Development Bank, vol. 35(1), pages 79-94, March.
    8. Muhamadu Awal Kindzeka Wirajing & Tii N. Nchofoung & Felix Mejame Etape, 2023. "Revisiting the human capital–economic growth nexus in Africa," SN Business & Economics, Springer, vol. 3(7), pages 1-29, July.
    9. Sèna Kimm Gnangnon, 2022. "Aid for Trade is more effective when the trading environment is more predictable," Economic Affairs, Wiley Blackwell, vol. 42(3), pages 453-476, October.
    10. Romano Piras, 2023. "Remittances, economic complexity, and new firms’ creation: empirical evidence from a large sample of countries," Economic Change and Restructuring, Springer, vol. 56(4), pages 2557-2600, August.
    11. Djeunankan, Ronald & Njangang, Henri & Tadadjeu, Sosson & Kamguia, Brice, 2023. "Remittances and energy poverty: Fresh evidence from developing countries," Utilities Policy, Elsevier, vol. 81(C).
    12. Gnangnon, Sèna Kimm, 2023. "The Quality of Aid for Trade Flows and Economic Complexity," EconStor Preprints 271538, ZBW - Leibniz Information Centre for Economics.
    13. Gnangnon, Sèna Kimm, 2022. "Duration of WTO Membership and Investment-Oriented Remittances Flows," EconStor Preprints 251274, ZBW - Leibniz Information Centre for Economics.
    14. Gnangnon, Sèna Kimm, 2022. "Effect of the utilization of non-reciprocal trade preferences offered by the QUAD countries on beneficiary countries' economic complexity," Journal of the Japanese and International Economies, Elsevier, vol. 65(C).
    15. Ben Saad, Myriam & Brahim, Mariem & Schaffar, Alexandra & Guesmi, Khaled & Ben Saad, Rym, 2023. "Economic complexity, diversification and economic development: The strategic factors," Research in International Business and Finance, Elsevier, vol. 64(C).
    16. MAMADOU ASNGAR, Thierry & ONGO NKOA, Bruno Emmanuel & WIRAJING, Muhamadu Awal Kindzeka, 2022. "The Effect Of Banking Competition On Financial Stability In Central African Economic And Monetary Community Zone," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 26(1), pages 23-50, March.
    17. Henri Njangang & Youssouf Nvuh-Njoya, 2023. "Unravelling the link between democracy and economic complexity: fresh evidence from the Varieties of Democracy data," SN Business & Economics, Springer, vol. 3(3), pages 1-32, March.
    18. Valentine Soumtang Bime & Dieudonné Mignamissi & Agathe Cassandra Koumis Ngagni, 2024. "Does financial openness matter for economic transformation in sub-Saharan Africa?," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-49, April.
    19. Désiré Avom & Brice Kamguia & Joseph Pasky Ngameni, 2021. "Does volatility hinder economic complexity?," Economics Bulletin, AccessEcon, vol. 41(3), pages 1187-1202.
    20. Honoré Tekam Oumbé & Ronald Djeunankan & Alain Mekia Ndzana, 2023. "Does information and communication technologies affect economic complexity?," SN Business & Economics, Springer, vol. 3(4), pages 1-25, April.

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