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Remittances, Growth and Poverty: New Evidence from Asian Countries

  • Katsushi S. Imai

    (Economics, School of Social Sciences, University of Manchester (UK) and RIEB, Kobe University (Japan))

  • Raghav Gaiha

    (Faculty of Management Studies, University of Delhi, India)

  • Abdilahi Ali

    (Economics, School of Social Sciences, University of Manchester, UK)

  • Nidhi Kaicker

    (Faculty of Management Studies, University of Delhi, India)

The present study re-examines the effects of remittances on growth of GDP per capita using annual panel data for 24 Asia and Pacific countries. The results generally confirm that remittance flows have been beneficial to economic growth. However, our analysis also shows that the volatility of capital inflows such as remittances and FDI is harmful to economic growth. This means that, while remittances contribute to better economic performance, they are also a source of output shocks. Finally, remittances contribute to poverty reduction – especially through their direct effects. Migration and remittances are thus potentially a valuable complement to broad-based development efforts.

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Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number DP2011-30.

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Length: 36 pages
Date of creation: Nov 2011
Date of revision:
Handle: RePEc:kob:dpaper:dp2011-30
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