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Article
Publication date: 15 May 2009

Mahalia Jackman, Roland Craigwell and Winston Moore

The purpose of this paper is to investigate the potential link between remittances and economic volatility in small island developing states.

Abstract

Purpose

The purpose of this paper is to investigate the potential link between remittances and economic volatility in small island developing states.

Design/methodology/approach

The paper estimates a panel data model using a database containing 20 small island developing states (SIDS) observed over annual intervals between 1986 and 2005.

Findings

The results suggest that, in general, remittance flows have a stabilising influence on output and investment volatility. However, given the importance of these flows to SIDS, the volatility of remittances also has a significant and positive impact on both investment and consumption volatility.

Practical implications

The policy implications of the study's findings is that SIDS (similar to how oil‐producing nations take oil price fluctuations into account when considering policy changes) may have to monitor and forecast future remittance flows and take these projections into account when making changes to either their monetary or fiscal policy stance.

Originality/value

Workers' remittances have grown dramatically worldwide, particularly in SIDS, where they constitute one of the main sources of foreign exchange. Given the importance of these flows to economic growth and development in these countries, this study examines the potential link between remittances and economic volatility.

Details

Journal of Economic Studies, vol. 36 no. 2
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 28 September 2012

Syed Tehseen Jawaid and Syed Ali Raza

This purpose of this paper is to investigate the relationship between workers' remittances and economic growth in China and Korea.

Abstract

Purpose

This purpose of this paper is to investigate the relationship between workers' remittances and economic growth in China and Korea.

Design/methodology/approach

This paper has employed annual time series data over the period of 1980 to 2009. Johansen and Jeuuselius's cointegration technique, error correction model, and sensitivity analysis have been performed to analyze the long‐run, short‐run relationships and robustness of the results, respectively.

Findings

Cointegration results confirm that there exists significant positive long‐run relationship between remittances and economic growth in Korea, while, significant negative relationship exist between remittances and economic growth in China. Error correction model confirms the significant positive short‐run relationship of workers' remittances with economic growth in Korea, while the results of China were insignificant in short run. Causality analysis confirms unidirectional causality runs from workers' remittances to economic growth, in both China and Korea. Sensitivity analysis confirms that the results are robust.

Practical implications

It is suggested that Korea should form friendly policies to ensure the continuous inflows of workers' remittances and their efficient utilization to ensure economic growth. On the other hand, China should keep an eye to reducing voluntary unemployment, which leads to decrease in productivity and growth in the country.

Originality/value

The paper provides some empirical evidence of whether workers' remittances have contributed significantly to large open economies.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 5 no. 3
Type: Research Article
ISSN: 1754-4408

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Article
Publication date: 28 May 2021

Yogeeswari Subramaniam, Tajul Ariffin Masron and Nik Hadiyan Nik Azman

The continuous and rapid growth of remittances has become one of the sources of income for millions of poor families in developing countries. As such, an increase of…

Abstract

Purpose

The continuous and rapid growth of remittances has become one of the sources of income for millions of poor families in developing countries. As such, an increase of remittance flow can have a significant impact on the ability of the household not only to get enough food but also to get nutritious foods. Therefore, this study investigates the implication of remittances on food security (FS) in 51 developing countries from 2011–2016.

Design/methodology/approach

A dynamic panel estimator is applied to examine remittances and FS nexus.

Findings

By using the dynamic panel estimator, the results indicate that the level of food supply tends to be higher in countries with a higher flow of remittances. This study justifies the need for high income as well as high middle-income countries to be more open and receptive to migration as this could indirectly the mean through which host countries can assist economic development in low-income developing countries.

Originality/value

Given the diverse measure of FS, past studies demonstrated a positive association between remittance and FS, but it may focus on only one dimension of FS. To the authors’ limited knowledge, this is not enough to know the importance of remittance in determining the overall FS status. Hence, this study wishes to extend the literature by using a more comprehensive measure of FS and more countries in the sample.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

Keywords

Content available
Article
Publication date: 24 May 2021

Oluyemi Theophilus Adeosun and Oluwaseyi Omowunmi Popogbe

Human capital flight from developing countries to developed nations has been rising and giving concerns to governments and scholars alike. This paper aims to explore the…

Abstract

Purpose

Human capital flight from developing countries to developed nations has been rising and giving concerns to governments and scholars alike. This paper aims to explore the impact migration from Nigeria has on economic output growth by focusing on the migration rate, remittances, population growth and secondary school enrolment. This has not received adequate attention in the literature, as many papers have primarily focused on the impact of remittances on economic growth.

Design/methodology/approach

Leveraging on the macro-level approach to migration, remittances and the economy, this research considers the nexus among the human capital flight and output growth variables by using the autoregressive distributed lag (ARDL) method of analysis for time series data between 1986 and 2018.

Findings

The net migration rate from Nigeria was found from the empirical analysis to be more disadvantageous for the economy, given its negative relationship with economic growth despite the large volume of foreign incomes (remittances). It also shows that secondary school enrolment positively and significantly impacted the Nigerian growth rate in the long run.

Originality/value

This research has widened the use of variables by combining net migration rate, remittances from abroad, population growth rate and secondary school enrolment to obtain a more robust outcome with implications for research and practice.

Details

Review of Economics and Political Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2356-9980

Keywords

Content available
Article
Publication date: 29 March 2021

Rasha Qutb

Migrants’ remittances to Egypt have increased considerably in both size and importance over the past 40 years. This increase has made Egypt one of the top remittance

Abstract

Purpose

Migrants’ remittances to Egypt have increased considerably in both size and importance over the past 40 years. This increase has made Egypt one of the top remittance recipients in the world and the leading recipient country in the Middle East. As migrant remittances are one of Egypt's main sources of foreign capital, this study aims to identify the impact of these remittances on economic growth.

Design/methodology/approach

The study collects annual data on migrant remittances sent to Egypt during the period 1980–2017. The study uses the Augmented Dickey–Fuller test and Johnsen's Co-integration test to establish long-run relationships between variables. Then, a vector error correction model (VECM) is used to combine long-run and short-run dynamics, and a Granger causality test is performed. Finally, diagnostic tests of the VECM are conducted.

Findings

Results reveal that migrants’ remittances to Egypt are countercyclical in the sense that they have a long-term negative impact on economic growth. These results are determined by the Granger causality between migrants' remittances, inflation rate and imports.

Practical implications

The study can help policymakers to develop appropriate policies to turn migrants' remittances into a reliable source of capital that could result in a stable economic growth.

Originality/value

Although various empirical studies have examined the growth effect of remittances, most of them are based on cross-country data. This study contributes to the field by attempting to close a gap in the literature by empirically analyzing the impact of remittances on a single country over a long period.

Details

Review of Economics and Political Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2356-9980

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Article
Publication date: 29 April 2021

Anupam Das and Adian McFarlane

The purpose of this paper is to examine the impact of remittance inflows (remittances) on electricity consumption and electric power losses in Jamaica.

Abstract

Purpose

The purpose of this paper is to examine the impact of remittance inflows (remittances) on electricity consumption and electric power losses in Jamaica.

Design/methodology/approach

The authors use annual data from 1976 to 2014 and apply vector error correction modelling, Granger causality testing and impulse response analysis.

Findings

First, the authors find that there is co-integration between remittances and the energy variables, namely electricity consumption and electric power losses. Second, short-run Granger causality exists between the energy variables and remittances. This causality is bidirectional between the energy variables and positive changes in remittances, but it is unidirectional running from the energy variables to negative movements in remittances. Third, the authors find that in the long-run remittances have a negative relationship with electric power losses and a positive relationship with the consumption of electricity.

Practical implications

Findings from this paper will help to elucidate the relationship between electricity consumption, and electric power losses, and remittances.

Social implications

The problem of electric power losses is acute in Jamaica and it is mostly due to theft. At the same time, Jamaica receives significant remittances. Social policy could have a role to encourage the use of remittances to help stem the theft of electricity.

Originality/value

This is the first study that examines the relationships between remittances, electricity consumption and electric power losses.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 29 March 2021

Bosede Victoria Kudaisi, Titus Ayobami Ojeyinka and Tolulope Temilola Osinubi

International remittances are an important segment of external financial flows in Nigeria, currently superseding official development aid (ODA) in terms of volume, and…

Abstract

Purpose

International remittances are an important segment of external financial flows in Nigeria, currently superseding official development aid (ODA) in terms of volume, and foreign direct investment (FDI) in terms of stability. This study is motivated by the recent increase in remittance flows in Nigeria as the highest recipient in West Africa, and the fact that the growth impact of remittances is weak within the country. The financial liberalization index developed by Chinn and Ito (2006) is employed in this study to examine the role of financial liberalization in the remittances-growth nexus in Nigeria over the period 1990–2018.

Design/methodology/approach

To address the possibility of endogeneity among the variables in the model, the study employs the generalized method of moments (GMM) as a technique of analysis.

Findings

Remittances and financial liberalization are found to have negative significant impacts on economic growth. However, the effect of the interaction term of financial liberalization and remittances on economic growth is positive and significant. This suggests that the two variables act as complements in the enhancement of economic growth in Nigeria. The study thus concludes that financial liberalization is a strong transmission channel through which remittance inflows positively affect economic growth in Nigeria. The study also advocates for a well-developed financial sector in order to attract more growth-enhancing remittances into the country.

Research limitations/implications

The implication of the research findings is that an unrestrained financial sector is necessary to encourage and optimize the benefits of remittance flows on economic growth in Nigeria.

Originality/value

Previous studies have considered the effects of financial development on the remittances-growth nexus in Nigeria. However, this study examines the role of financial liberalization in the nexus between remittances and economic growth in Nigeria by using the Chinn and Ito (2008) index of financial openness.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

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Book part
Publication date: 31 December 2010

Yan Xing, Moshe Semyonov and Yitchak Haberfeld

Remittances sent by immigrants have long been viewed as a means to combat poverty, to improve consumption, and to raise standard of living. The present study examines the…

Abstract

Remittances sent by immigrants have long been viewed as a means to combat poverty, to improve consumption, and to raise standard of living. The present study examines the impact of remittances on the economic well-being of Indian households. The analysis is conducted on a randomly selected representative sample of households in Rajasthan. Three types of households are examined: 575 households having current labor migrants, 162 never having migrants, and 232 not having migrants at present but sent migrants in the past. Analysis of the data reveals meaningful differences between the three types of households. Specifically, those having labor migrants are characterized by the highest household income and standard of living. Further analyses suggest that although remittances are likely to improve economic well-being and to secure a higher standard of living they do not have long lasting effect on the economic well-being of the families when migration ends.

Details

Migration and Culture
Type: Book
ISBN: 978-0-85724-153-5

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Book part
Publication date: 31 December 2010

Don DeVoretz and Florin Vadean

This chapter analyses the effect of cultural differences among ethnic groups on the remittance behaviour of native and immigrant households in Canada. In contrast to the…

Abstract

This chapter analyses the effect of cultural differences among ethnic groups on the remittance behaviour of native and immigrant households in Canada. In contrast to the New Economic of Labour Migration (NELM) literature that examines remittance motivation in the framework of extended family agreements, we embed remittances in a formal demand system, suggesting that they represent expenditures on social relations with relatives and/or friends and contribute to membership in social/religious organisations respectively. The results indicate strong ethnic group cultural differences in the remittance behaviour of recent Asian immigrant households and highlight the importance of differentiating with respect to cultural background when analysing the determinants of remittances.

Details

Migration and Culture
Type: Book
ISBN: 978-0-85724-153-5

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Book part
Publication date: 2 May 2013

Steffen Dalsgaard

Purpose – The chapter discusses the importance of remittances for the way rural people in Manus Province, Papua New Guinea, engage with capitalism in the form of…

Abstract

Purpose – The chapter discusses the importance of remittances for the way rural people in Manus Province, Papua New Guinea, engage with capitalism in the form of development, wage labor, and the modern consumer economy.Methodology/approach – The chapter draws upon a combination of original ethnographic fieldwork conducted between 2002 and 2008 and readings of previous anthropological research about Manus.Findings – The chapter shows how the remittances of goods and money are part of the maintenance of long-term exchange relationships between emigrants and their rural kin, and how remittances are regarded as crucial in fostering local development. The remittances comprise a large proportion of the flow of money into Manus. They also form social ties between migrants and villagers, and may facilitate the return of migrants to their home village. The moral conflicts and evaluations of status and leadership tied into the remittance practices and the strategies employed by returning migrants are explained as the articulation of different values rather than one system supplanting the other.Originality/value – The aspect of remittances related to return migration is particularly under-theorized in anthropology. In this way the chapter has value to both researchers specializing in remittance-economies or local-level politics and development planners and practitioners.

Details

Engaging with Capitalism: Cases from Oceania
Type: Book
ISBN: 978-1-78190-542-5

Keywords

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