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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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Citations
Personal Remittances and Financial Development for Economic Growth in Economic Transition Countries
Shijun Cao,Sung Jin Kang +1 more
TL;DR: In this paper, the authors investigated the effect of personal remittance inflows and financial development on the economic growth of 29 economic transition countries for the period of 2000-2015, using a dynamic panel approach.
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Impact of financial development and institutional quality on remittance-growth nexus: evidence from the topmost remittance-earning economies
Md. Saiful Islam,I. A. Alhamad +1 more
TL;DR: In this article , the authors investigated the asymmetric impact of personal remittances on economic growth, having financial development and institutional quality as control variables using panel data from 1996 to 2019 on the ten largest remittance-earning economies of the world.
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The impact of remittances on regional consumption and investment
TL;DR: In this paper, the authors examined the effect of international remittances on regional economic development using spatial data from an original household survey carried out in the Republic of Moldova and found that remittance leads to significantly increasing marginal productive investments in urban regions at the expense of rural regions.
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Remittances and migration intentions of the left-behind
Matloob Piracha,Amrita Saraogi +1 more
TL;DR: In this article, the authors show that there exists a dual causality between receipt of remittances by non-migrants and their migration intentions and add a novel element to the empirical literature by specifying the mechanism behind the link between remittance and migration.
Real Estate Regulations in Accra: Some Macroeconomic Consequences?
TL;DR: In this article, a variant of the monocentricentric city model is used to calculate Accra's housing supply elasticity relative to those of other similarly sized African cities, and the model suggests that housing supply responsiveness is considerably lower in Accra, a result consistent with the observed higher housing costs.
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