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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
Trade Openness and Diversification of External Financial Flows for Development: An Empirical Analysis:
Sèna Kimm Gnangnon
- 01 Apr 2020
TL;DR: In this article, the implementation of sustainable development goals (SDGs) adopted in 2015 by the international community in the Agenda 2030 requires a substantial mobilization of financial resources, which requires a large number of resources.
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The Impact of Remittance on Economic Growth in Low and Middle Income Countries
TL;DR: In this article, the authors investigated the relationship between remittance and economic growth in a panel of 93 low and middle-income countries using annual data from 2009 to 2017 and found that remittance has a significant negative impact on growth after removing outliers.
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Remittances, Economic Growth and Poverty: A Case of African OIC Member Countries
TL;DR: In this paper, the authors investigated the impact of remittance inflows on economic growth and poverty reduction for seven African countries using data from 1992-2010 and found that remittances have statistically significant growth enhancing and poverty reducing impact.
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REMITTANCES AND DEVELOPMENT IN THE WESTERN BALKANS: THE CASES OF MACEDONIA, KOSOVO AND BOSNIA-HERZEGOVINA - with emphasis on crisis, gender, urban-rural and ethnicity role -
Marjan Petreski,Branimir Jovanovic +1 more
- 01 Jan 2013
TL;DR: In this article, the authors present the results of the Regional Research Promotion Program in the Western Balkans (RRPP), which is run by the University of Fribourg upon a mandate of the Swiss Agency for Development and Cooperation, SDC, Federal Department of Foreign Affairs.
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Impact of Workers’ Remittances on Household Welfare in District Jhang (A Case Study of Tehsil 18 Hazari)
TL;DR: In this paper, the impact of remittances on household welfare as well as poverty of the household in Tehsil 18 Hazari, District jhang, Punjab, Pakistan was investigated.
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