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The impact of remittances on economic growth in small-open developing economies

  • Ahortor, Christian R.K.
  • Adenutsi, Deodat E.

The essence of this study is to verify the macroeconomic implications of cross-border remittances for economic growth prospects of small-open developing economies for the period, 1996-2006. A set of dynamic panel model, specified within the framework of Blundell-Bond Generalized Method of Moment (GMM) was empirically analyzed. Using annual panel data from 31 small-open developing countries from Sub-Saharan Africa, Latin America and the Caribbean, this paper argues that, contemporaneously, remittances contribute significantly to economic growth in small-open developing economies. Remittances, however, contribute more to long-run economic growth in Latin America and the Caribbean than to Sub-Saharan Africa. In dynamic terms, remittances retard economic growth, but with overall positive impact across these regions.

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File URL: http://mpra.ub.uni-muenchen.de/37109/1/MPRA_paper_37109.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 37109.

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Date of creation: 14 Sep 2008
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Publication status: Published in Journal of Applied Sciences 18.9(2009): pp. 3275-3286
Handle: RePEc:pra:mprapa:37109
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