Do Workersâ€™ Remittances Promote Economic Growth?
Over the past decades, workers' remittances have grown to become one of the largest sources of financial flows to developing countries, often dwarfing other widely-studied sources such as private capital and official aid flows. While it is undeniable that remittances have poverty-alleviating and consumption-smoothing effects on recipient households, a key empirical question is whether they also serve to promote long-run economic growth. This study tackles this question and addresses the main shortcomings of previous empirical work, focusing on the appropriate measurement, and incorporating an instrument that is both correlated with remittances and would only be expected to affect growth through its effect on remittances. The results show that, at best, workers' remittances have no impact on economic growth.
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"Are Immigrant Remittance Flows a Source of Capital for Development?,"
IMF Working Papers
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"Remittances and Institutions; Are Remittances a Curse?,"
IMF Working Papers
08/29, International Monetary Fund.
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"Remittances and the Dutch disease,"
FRB Atlanta Working Paper
2007-08, Federal Reserve Bank of Atlanta.
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FRB Atlanta Working Paper
2008-12, Federal Reserve Bank of Atlanta.
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