Remittances, Institutions and Economic Growth

Catrinescu, Natalia; León‐Ledesma, Miguel A.; Piracha, Matloob; Quillin, Bryce

doi:10.2139/ssrn.902342

Cited by 22 publications

(1 citation statement)

References 6 publications

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“…Theoretically, remittance inflows should drive economic growth. There are varied means through which remittances influence economic growth: they serve as a source of funds for investment, provide immediate cash flow for household consumption, and have a multiplier effect that is associated with remittance inflow (Catrinescu, Leon-Ledesma, Piracha, & Quillin, 2006). Remittance inflow improves aggregate demand, which leads to the creation of employment.…”

Section: Introductionmentioning

confidence: 99%

Remittances and economic growth: Evidence from South Africa using ARDL in the presence of structural breaks

Biyase,

Udimal,

Manguzvane

2024

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The aim of this study is to investigate the relationship between remittances and economic growth in South Africa, using data running from 1970 to 2019. We utilize the ARDL bounds testing approach to explore the relationship between remittances and economic growth, incorporating control variables and addressing structural breaks. Our findings suggest that the structural change in economic growth occurred in 2008 during the global financial crisis, while the break point for remittances emerged in 1997. After taking into consideration the presence of structural breaks, our study found the estimated coefficient for remittances to be statistically significant at the 1% level of significance. The coefficient is negative, indicating that remittances have a negative impact on economic growth. This result is robust to alternative estimators, including the fully modified least squares technique and the impulse response function. Despite employing different estimation methods, the consistent finding of a negative relationship between remittance inflows and economic growth underscores the reliability of our conclusion. Being a recipient of remittances, it is appropriate for a study of this nature to guide policy makers in formulating appropriate policies to benefit from the full impact of remittances, diversify the economy, and reduce reliance on remittance inflows.

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Section: Introductionmentioning

confidence: 99%

Remittances and economic growth: Evidence from South Africa using ARDL in the presence of structural breaks

Biyase,

Udimal,

Manguzvane

2024

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Migrant Remittances and Economic Growth in ECOWAS Countries: Does Digitalization Matter?

Gniniguè

Ali

2021

Eur J Dev Res

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Digital technologies can be a critical channel in boosting economic growth and achieving Sustainable Development Goals. During crises like COVID-19, digitalization can facilitate the reception of remittances from relatives and friends. We analyze the effects of migrant remittances (MRs) on economic growth in ECOWAS countries with a special emphasis on the role of digitalization. The simultaneous equations and the seemingly unrelated regression method are used with data spanning from 1980 to 2017. Findings show that digitization is not a channel for transmitting the effects of MRs on economic growth in ECOWAS countries. However, digitalization constitutes a catalyst of the effects of MRs on economic growth in non-WAEMU countries, while it does not in WAEMU (a sub-regional block of ECOWAS). Nevertheless, remittances contribute to human capital accumulation, investment, and consumption in WAEMU countries. Policies aiming at strengthening digitization are welcome to foster the effect of MRs on countries' economies in ECOWAS, in general, and WAEMU in particular.

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Comparative analysis, cash transfers, household investment and inequality reduction in Togo

Sodokin

2021

Applied Economics

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This paper explores the impact of domestic and international cash transfers on poverty and household resilience in Togo from a comparative perspective. The paper uses data from two household surveys (The Unified Questionnaire of Basic Well-being Indicators) conducted by the National Institute of Statistics Economic and Demographic Studies of Togo in 2011 and 2015. The analysis uses the propensity score matching method and the quantile instrumental regression. The first category of results shows that migrants' external and internal remittances positively affect poverty and inequality and improve households' investments in Togo. The second category of results allows concluding on the implications for public policy in a time of pandemic shock, such as the Sars-Cov-2 one.

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Remittances, Institutions and Economic Growth

Cited by 22 publications

References 6 publications

Remittances and economic growth: Evidence from South Africa using ARDL in the presence of structural breaks

Remittances and economic growth: Evidence from South Africa using ARDL in the presence of structural breaks

Migrant Remittances and Economic Growth in ECOWAS Countries: Does Digitalization Matter?

Comparative analysis, cash transfers, household investment and inequality reduction in Togo

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