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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
Remittance, Institutions and Investment Volatility Interactions: An Intercontinental Analysis
TL;DR: In this paper, the causal relationship between remittances and investment volatility via the intermediating role of institutions was uncovered, and policy suggestions are drawn based on their results. But, they did not consider the impact of institutional quality on mitigating the negative impacts of investment volatility.
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Aging population, emigration and growth in Barbados
Arindam Banik,Pradip K. Bhaumik +1 more
TL;DR: In this paper, the authors highlight the dual effect of demographic changes and emigration of young people on the economic growth of small Caribbean economies and the serious economic challenges arising therefrom.
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Do migrant remittances affect household spending? Focus on wedding expenditures
TL;DR: The authors investigated the impact of remittances from labor migrants on households' wedding expenditures and found that remittance-receiving households spend a smaller share of their budget on wedding ceremonies.
Nexus between economic growth, external debt, oil price, and remittances in India: New insight from novel DARDL simulations
TL;DR: In this paper , the linkages between external debt, crude oil price, and personal remittances affect economic growth in India, and the authors make use of the newly established unique dynamic autoregressive distributed lag (DARDL) simulations framework to evaluate long and short-run cointegration among chosen variables, as well as the impact of negative and positive changes in the regressor on the regressand.
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