Do Remittances Crowd-In or Crowd-Out Domestic Investment? An Empirical Analysis of 24 Low-Income Countries

Dash, Ranjan Kumar

doi:10.1007/s13132-022-00948-5

Cited by 5 publications

(4 citation statements)

References 33 publications

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“…On the other hand, we do not reject the hypotheses on the positive effect of remittances on economic growth (H1b) and capital formation (H2b), results consistent with previous research (see, e.g., Ekanayake and Moslare 2020;Dash 2023). In addition, it is important to note that this research contributes to the literature by examining the relationship of remittances and structural transformation.…”

Section: Variance Decomposition Analysissupporting

confidence: 80%

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Is There a Link between Remittances, Capital Formation, Structural Transformation and Economic Growth? A Dynamic Panel Analysis for Latin America under the PVAR Approach

Zurita Moreano,

González Bautista,

Vallejo Mata

et al. 2024

Economies

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The literature has mainly focused on analyzing the relationship of remittances with economic growth and social welfare, neglecting more complex aspects where remittances can have relevant implications. To contribute to the literature, the objective of this research is to examine the dynamic relationship between remittances, capital formation, structural transformation and economic growth in 15 Latin American countries during the period 1996–2019. To meet the objective, a panel vector autoregressive regression (PVAR) model was estimated, focusing on the analysis of the impulse-response function and variance decomposition. The results show a positive effect of remittances on economic growth and capital formation and a negative effect of remittances on structural transformation for initial periods and positive for later periods, framing a non-linear relationship. In addition, it was determined that structural transformation does not have a significant impact on economic growth. Finally, it was found that capital formation has a partial positive effect on economic growth. It is concluded that public policies should generate support mechanisms for the efficient channeling of these resources so that they become engines of growth.

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Section: Variance Decomposition Analysissupporting

confidence: 80%

“…tor growth vestment tic investment. Dash (2023) 24 low-income countries; 2004-2008; fully modified ordinary least squares (FMOLS).…”

Section: Model (Ardl)mentioning

confidence: 99%

Is There a Link between Remittances, Capital Formation, Structural Transformation and Economic Growth? A Dynamic Panel Analysis for Latin America under the PVAR Approach

Zurita Moreano,

González Bautista,

Vallejo Mata

et al. 2024

Economies

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“…Findings highlighted that women empowerment has increased human capital in Asian and African countries. Dash (2022) used data from 2004 to 2018 and showed how remittances may affect development. It was shown that remittances have increased human development and investment.…”

Section: Literature Reviewmentioning

confidence: 99%

Role of Foreign Remittances, Foreign Aid and Financial Development in Determining Human Development of Selected Asian Countries

Gillani,

Fouzia,

Atif

et al. 2023

J. educ. soc. stud.

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Foreign Remittances play a key role in improving growth and development in economies. The inflow of global remittance in developing economies has been observed as increasing extremely since 1990. This study analyzed the impact of remittances, foreign aid, and financial development on human development in selected Asian countries. We have used a random effect technique in this research. Our study results highlight that increased remittances and foreign aid have enhanced living standards and human development in the concerned Asian economies. Moreover, the role of financial development is to contribute towards human development along with increased urban population. Considering the study results, it is recommended that there should be much focus on remittances inflow in Asian economies. These countries must attract more aid by improving their growth and development policies. There should be more access to easy credit facilities for high investments and employment opportunities for the masses in these countries.

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“…Results vary depending on the methodology, control variables, and sample size used. However, in general, most studies find evidence of a crowding out effect of public debt on economic growth, although the magnitude of this effect varies [18]. Deleidi & Levrero [19] conducted a theoretical and empirical analysis of the money creation process in the United States and found that public debt has a negative effect on economic growth through reducing private investment.…”

Section: Ease Of Usementioning

confidence: 99%

Public Debt and Macroeconomic Dynamics: A Simulation Model with Variables of Interest Rate, Economic Growth, Domestic Consumption, Government Expenditure, and Net Exports

Viphindrartin,

Wilantari,

Zainuri

et al. 2023

Advances in Economics, Business and Management Research

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This research explores causal relationships among public debt, interest rates, economic growth, domestic consumption, government spending, and net exports. It employs a panel vector model to investigate these relationships, assuming that all variables are endogenous and influenced by their own past values and those of other variables. The findings indicate that public debt negatively affects most variables, suggesting it hinders the economies of Indonesia, the Philippines, Malaysia, and Thailand. Rising interest rates also disrupt exports in ASEAN member countries. Surprisingly, government spending increases public debt. Consumption in these regions encourages exports through international trade agreements, and exports, in turn, boost government spending and state income. Economic growth, as measured by GDP, drives all variables, underscoring its role in both the monetary and real sectors of these economies. However, it's important to note that data availability and the research period were limitations. Based on the results, it's recommended that the government exercise caution in increasing public debt and balance short-term economic pressures with long-term economic drivers to mitigate debt's impact on the economy.

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Do Remittances Crowd-In or Crowd-Out Domestic Investment? An Empirical Analysis of 24 Low-Income Countries

Cited by 5 publications

References 33 publications

Is There a Link between Remittances, Capital Formation, Structural Transformation and Economic Growth? A Dynamic Panel Analysis for Latin America under the PVAR Approach

Is There a Link between Remittances, Capital Formation, Structural Transformation and Economic Growth? A Dynamic Panel Analysis for Latin America under the PVAR Approach

Role of Foreign Remittances, Foreign Aid and Financial Development in Determining Human Development of Selected Asian Countries

Public Debt and Macroeconomic Dynamics: A Simulation Model with Variables of Interest Rate, Economic Growth, Domestic Consumption, Government Expenditure, and Net Exports

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