Workers’ remittances and economic growth in China and Korea: an empirical analysis
This study investigates the relationship between workers’ remittances and economic growth in China and Korea by employing time series data from period of 1980 to 2009. Cointegration results confirm that there exist significant positive long run relationship between remittances and economic growth in Korea, while, significant negative relationship exist between remittances and economic growth in China. Error correction model confirms the significant positive short run relationship of workers’ remittances with economic growth in Korea while, the results of China were insignificant in short run. Causality analysis confirms unidirectional causality runs from workers’ remittances to economic growth in both China and Korea. Sensitivity analysis confirms that the results are robust. It is suggested that Korea should form friendly policy to ensure the continuous inflows of workers’ remittances and their efficient utilization to ensure economic growth. On the other hand, China should keep an eye to reduce voluntary unemployment leads to decrease in productivity and growth in the country.
|Date of creation:||2012|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Samir Jahjah & Ralph Chami & Connel Fullenkamp, 2003.
"Are Immigrant Remittance Flows a Source of Capital for Development?,"
IMF Working Papers
03/189, International Monetary Fund.
- Ralph Chami & Connel Fullenkamp & Samir Jahjah, 2005. "Are Immigrant Remittance Flows a Source of Capital for Development?," IMF Staff Papers, Palgrave Macmillan, vol. 52(1), pages 55-81, April.
- Syed tehseen, jawaid & Abdul, waheed, 2011.
"Effects of Terms of Trade and its Volatility on Economic Growth: A Cross Country Empirical Investigation,"
32694, University Library of Munich, Germany.
- Syed Jawaid & Abdul Waheed, 2011. "Effects of Terms of Trade and its Volatility on Economic Growth: A Cross Country Empirical Investigation," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 18(2), pages 217-229, December.
- Katsushi Imai & Raghav Gaiha & Abdilahi Ali & Nidhi Kaicker, 2011.
"Remittances, Growth and Poverty: New Evidence from Asian Countries,"
The School of Economics Discussion Paper Series
1125, Economics, The University of Manchester.
- Imai, Katsushi S. & Gaiha, Raghav & Ali, Abdilahi & Kaicker, Nidhi, 2014. "Remittances, growth and poverty: New evidence from Asian countries," Journal of Policy Modeling, Elsevier, vol. 36(3), pages 524-538.
- Katsushi S. Imai & Raghav Gaiha & Abdilahi Ali & Nidhi Kaicker, 2011. "Remittances, Growth and Poverty: New Evidence from Asian Countries," Discussion Paper Series DP2011-30, Research Institute for Economics & Business Administration, Kobe University.
- Katsushi Imai & Raghav Gaiha & Abdilahi Ali & Nidhi Kaicker, 2013. "Remittances, Growth and Poverty: New Evidence from Asian Countries," Discussion Paper Series DP2013-18, Research Institute for Economics & Business Administration, Kobe University.
- Ahortor, Christian R.K. & Adenutsi, Deodat E., 2008. "The impact of remittances on economic growth in small-open developing economies," MPRA Paper 37109, University Library of Munich, Germany.
- Qayyum, Abdul & Javid, Muhammad & Arif, Umaima, 2008. "Impact of Remittances on Economic Growth and Poverty: Evidence from Pakistan," MPRA Paper 22941, University Library of Munich, Germany.
- Bichaka Fayissa & Christian Nsiah, 2010. "Can Remittances Spur Economic Growth and Development? Evidence from Latin American Countries (LACs)," Working Papers 201006, Middle Tennessee State University, Department of Economics and Finance.
- Abu Siddique & E. A. Selvanathan & Saroja Selvanathan, 2011.
"Remittances and Economic Growth: Empirical Evidence from Bangladesh, India and Sri Lanka,"
Journal of Development Studies,
Taylor & Francis Journals, vol. 48(8), pages 1045-1062, October.
- Abu Siddique & E A Selvanathan & Saroja Selvanathan, 2010. "Remittances and Economic Growth: Empirical Evidence from Bangladesh India and Sri Lanka," Economics Discussion / Working Papers 10-27, The University of Western Australia, Department of Economics.
- Archanun Kohpaiboon, 2003. "Foreign trade regimes and the FDI-Growth Nexus: a case study of Thailand," Journal of Development Studies, Taylor & Francis Journals, vol. 40(2), pages 55-69.
- Yanikkaya, Halit, 2003. "Trade openness and economic growth: a cross-country empirical investigation," Journal of Development Economics, Elsevier, vol. 72(1), pages 57-89, October.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:39003. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.