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Are Immigrant Remittance Flows a Source of Capital for Development
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TL;DR: In this paper, the authors developed a framework that links the motivation for remittances with their effect on economic activity and showed that remittance has a negative effect on the economic growth.
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Abstract: The role of remittances in development and economic growth is not well understood. This is partly because the literatures on the causes and effects of remittances remain separate. We develop a framework that links the motivation for remittances with their effect on economic activity. Because remittances take place under asymmetric information and economic uncertainty, there exists a significant moral hazard problem. The implication is that remittances have a negative effect on economic growth. We test this prediction using panel methods on a large sample of countries. The results indicate that remittances do have a negative effect on economic growth, which indicates that the moral hazard problem in remittances is severe.
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Remittances and Occupational Outcomes of the Household Members Left-Behind
TL;DR: In this paper, the role of remittances and migration on the occupational outcomes of the household members left behind in Tajikistan was analyzed using the control function approach, and it was shown that there is no dependency effect of remittance.
Do Remittances Facilitate a Sustainable Current Account
Gazi Hassan,Mark J. Holmes +1 more
TL;DR: In this article, the authors examine how workers' remittances impact on the current account and find that the presence of remittance makes it more likely that exports and imports are cointegrated, thereby lending support to current account sustainability.
Remittances. Overview of the existing literature
S. Salomone
- 01 Jan 2006
TL;DR: In this paper, the authors present in a complete way the kernel of such a production, concluding that "the w orld is more balanced" than a clear-cut division between behavio ural and economic motives.
An alternative quality of life ranking on the basis of remittances
TL;DR: In this paper, the authors used the World Bank bilateral remittances data of international salaries and interpersonal transfers between 2010 and 2015 to compare European countries and suggested least squares method has favourable axiomatic properties.
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What drives Remittance Inflows to Sub-Saharan Africa. A Dynamic Panel Approach.
TL;DR: In this paper, the authors investigate the factors that drive remittance inflows into Sub Saharan Africa using annual data from 1980 to 2008 and generalized method of moments estimation techniques by Arellano and Bover (1995)/Blundell and Bond (1998), providing for data limitations, endogeneity of the variables, country heterogeneity and also control for other variables that affect the state of economic activity such as institutional quality.
References
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TL;DR: In this paper, a general treatment of social interactions into the modern theory of consumer demand is presented, where various characteristics of different persons are assumed to affect the utility functions of some persons, and the behavioral implications are systematically explored.
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