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Impact of trade openness, remittances, capital inflows & financial development on income in Vanuatu

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  • Kumar, Ronald R.

Abstract

In this study, using bounds approach and annual data for the period 1981-2008, the short and long-run effects of remittances and trade openness on income in Vanuatu are estimated. The results show trade openness and remittances having positive and significant effects, with no significant effects from financial development (FIN), foreign direct investment (FDI), and official development aid (ODA). FDI and ODA in this sense behave somewhat differently than remittances. Therefore a greater liberalization of goods and services market in general and short-term temporary movements of people in particular to boost remittances inflows and improving the overall institutional infrastructure is put forward as priority policy measures.

Suggested Citation

  • Kumar, Ronald R., 2010. "Impact of trade openness, remittances, capital inflows & financial development on income in Vanuatu," MPRA Paper 33221, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:33221
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    References listed on IDEAS

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    Cited by:

    1. Olufemi Saibu, 2014. "Capital Inflow and Economic Growth Nexus in Nigeria: The Role of Trade Openness," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 10(6), pages 99-113, December.

    More about this item

    Keywords

    Remittances; trade; economic growth; FDI; financial sector development; ODA; bounds test; Vanuatu;

    JEL classification:

    • N17 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Africa; Oceania
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

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