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Is Productivity Affected by Remittances? The Evidence from Morocco

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  • Farid Makhlouf

Abstract

Empirical results yield mixed evidence of the effect of remittances on economic growth in countries of origin. This note assesses the potential impact of remittance instability on total factor productivity in Morocco. It uses a threshold vector autoregression model for the period 1975–2014. Remittances are used as a threshold variable. Results show that the response of total factor productivity to shock in remittances is positive and stronger when those remittances exceed the value of 5.132 per cent of GDP with the reverse effect when they are lower than the threshold value. Public authorities may enhance remittances to accelerate a country's development. © 2018 John Wiley & Sons, Ltd.

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  • Farid Makhlouf, 2019. "Is Productivity Affected by Remittances? The Evidence from Morocco," Journal of International Development, John Wiley & Sons, Ltd., vol. 31(2), pages 211-222, March.
    • Handle: RePEc:wly:jintdv:v:31:y:2019:i:2:p:211-222
    DOI: 10.1002/jid.3398
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    Cited by:

    1. Farid Makhlouf & Refk Selmi, 2023. ""From Aspirations for Climate Action to the Reality of Climate Disasters": Can Migrants Play Key Role in Disaster Response?," Working Papers hal-04137400, HAL.
    2. Oussama Ben Atta & Kamal Kasmaoui & Mazhar Yasin Mughal & Farid Makhlouf, 2021. "More remittances, fewer kids—Impact of remittances on fertility in Morocco," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(8), pages 1238-1256, November.
    3. Refk Selmi & Farid Makhlouf, 2021. "Can Venezuelan scenario be repeated in Tunisia? The role of remittances in an inflationary context," Working Papers hal-03429730, HAL.
    4. Farid Makhlouf & Refk Selmi, 2022. "Do sanctions work in a crypto world? The impact of the removal of Russian Banks from SWIFT on Remittances," Working Papers hal-03599089, HAL.

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