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1 – 10 of 186The SARS-Cov2 pandemic has generated considerable debate about the role of vaccines in the fight against epidemics and the sensitivity and acceptability of new vaccines in…
Abstract
Purpose
The SARS-Cov2 pandemic has generated considerable debate about the role of vaccines in the fight against epidemics and the sensitivity and acceptability of new vaccines in emergency situations. The aim of this paper is to examine the nature of the relationship between remittances as an additional source of income and the acceptance of the COVID-19 vaccine and to provide an overview of the determinants of acceptance or hesitancy of the COVID-19 vaccine. It uses logistic regression and propensity score matching to study the relationship between remittances and COVID-19 vaccine acceptance. Using data from the Arab Barometer survey (2021–2022) for 10 Middle East and North Africa (MENA) countries, the results indicate that the number of people vaccinated among remittance recipients is higher than among those who do not receive remittances. The impact of international migration on vaccine acceptance in countries of origin can be seen in the transfer of norms and beliefs from host countries.
Design/methodology/approach
The paper uses logistic regression and propensity score matching to study the relationship between remittances and COVID-19 vaccine acceptance. using data from the Arab Barometer survey (2021–2022) for 10 MENA countries.
Findings
The results indicate that the number of people vaccinated among remittance recipients is higher than among those who do not receive remittances. The impact of international migration on vaccine acceptance in countries of origin can be seen in the transfer of norms and beliefs from host countries.
Research limitations/implications
Other variables possibly linked to vaccine acceptance can be incorporated into the study.
Practical implications
In countries of origin, international migration should be taken into account in health policies. The convergence of health standards between developed and developing countries can also be achieved through international migration.
Originality/value
The link between migration, through remittances as a proxy for norm transfers, and health, particularly vaccine acceptance in a period of health crisis, has never been addressed in the literature.
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Balraj Verma, Mandeep Bhardwaj, Sugandh Arora and Sumit Oberoi
The present study reviews the theoretical and empirical literature about the significance of international migrants' remittance to empirically analyse the effect of remittance on…
Abstract
Purpose
The present study reviews the theoretical and empirical literature about the significance of international migrants' remittance to empirically analyse the effect of remittance on the productivity growth of developing countries using a panel dataset from 1991 to 2021.
Design/methodology/approach
The study utilised the data envelopment analysis (DEA)-based Malmquist Productivity Index (MPI) to measure nationwide production efficiencies. It first performed a unit root test, cointegration test and pool mean group autoregressive distributed lag (PMG-ARDL) technique. To assess the robustness of the findings, the study also uses dynamic ordinary least squares (DOLS) and fully modified OLS (FMOLS) estimators.
Findings
The results demonstrated that remittances are a significant source of funding that promotes innovation [i.e. technological progress (TEC)] and hastens the country's total factor productivity (TFP) growth. However, the study needed to have established the effect of inward remittances on the nation's technical efficiency (EFF).
Research limitations/implications
As remittances encourage innovation and TFP growth (TFPG), the concerned governments must create favourable and enabling economic environments to increase remittance inflows, which will have far-reaching growth repercussions.
Originality/value
The present study emphasises the connection between remittances and productivity growth, the disintegration of TFP, advanced econometric techniques and contribution to research policy. Despite prior literature exploring the effect of remittances on economic growth, a dearth of literature exists on how remittances affect a country's productivity. The output-based MPI methodology used in this study offered a nuanced understanding of how remittances affect many facets of productivity growth in developing nations.
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James Temitope Dada, Emmanuel Olayemi Awoleye, Mamdouh Abdulaziz Saleh Al-Faryan and Mosab I. Tabash
The purpose of this study is to examine institutional quality’s absorptive capacity in African countries’ remittances-finance nexus.
Abstract
Purpose
The purpose of this study is to examine institutional quality’s absorptive capacity in African countries’ remittances-finance nexus.
Design/methodology/approach
A balanced panel data set of thirty African countries between 2000 and 2022 is used for the study. The study adopts an augmented mean group (AMG), method of moment quantile regression (MMQR) and two-step system generalized method of moment (2SGMM) as the estimation techniques due to the nature of the data set.
Findings
The findings of the direct effect reveal that remittances do not constitute the growth of financial development, while institutional quality promotes the growth of financial development in the long. The moderating effect of institutional quality in the linkages shows that the interactive term of institutional quality and remittances has a significant positive effect on financial development in the region. Hence, institutional quality moderates the impact of remittances. These results are robust to different proxies of financial development and estimates obtained from MMQR and 2SGMM.
Practical implications
This study, therefore, suggests that institutional quality is essential in the linkages between remittances and financial development. Hence, remittances should be seen as one of the instruments that can be used to develop the financial sector rather than survival mechanisms for households.
Originality/value
This study contributes to the literature by unearthing the absorptive capacity of institutional quality in the nexus between remittances and financial development in African countries, which extant studies have neglected.
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Imran Khan and Mrutuyanjaya Sahu
This paper aims to empirically examine the influence of macroeconomic and socioeconomic factors on improving financial inclusion in India, with a specific focus on two distinct…
Abstract
Purpose
This paper aims to empirically examine the influence of macroeconomic and socioeconomic factors on improving financial inclusion in India, with a specific focus on two distinct indicators of financial inclusion.
Design/methodology/approach
This study has used a time-series data set covering the years 1996 to 2022, using a nonlinear autoregressive distributed lag methodology. This approach allows for the examination of both short- and long-run effects of key macroeconomic and socio-economic indicators, including GDP per capita growth, remittance inflows and the income share held by the lowest 20% of the population on the growth of two financial inclusion indicators: the number of commercial bank branches and ATMs per 100,000 adults.
Findings
Model-1 investigates how commercial bank branch growth affects financial inclusion. Positive remittance inflow growth and a rise in the income share of the bottom 20% both lead to increased financial inclusion in both the short and long term, with the effects being more pronounced in the long run. Conversely, negative effects of remittance inflow growth and a decline in GDP per capita growth lead to reduced financial inclusion, primarily affecting the long run. Focusing on ATM growth, Model-2 reveals that positive remittance inflow growth has the strongest impact on financial inclusion in the short term. While income share growth for the bottom 20% and GDP growth also positively influence financial inclusion, their effects become significant only in the long run. Conversely, a decline in GDP per capita growth hinders financial inclusion, primarily affecting the short run.
Originality/value
This study fills a gap in research on macroeconomic and socioeconomic factors influencing financial inclusion in India by examining the impact of GDP per capita growth, remittance inflows and the income share held by the lowest 20% of the population, an area relatively unexplored in the Indian context. Second, the study provides comprehensive distinct results for different financial inclusion indicators, offering valuable insights for policymakers. These findings are particularly relevant for policymakers working toward Sustainable Development Goal 8.10.1, as they can use the results to tailor policies that align with SDG objectives. Additionally, policymakers in other developing nations can benefit from this study’s findings to enhance financial inclusion in their respective countries.
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Noah Cheruiyot Mutai, Lawrence Ibeh, Manh Cuong Nguyen, Joyce Wangui Kiarie and Cynthia Ikamari
Many African countries struggle to sustain steady economic growth. Specific macro-economic factors can influence a country’s economic growth. We investigated the trend and…
Abstract
Purpose
Many African countries struggle to sustain steady economic growth. Specific macro-economic factors can influence a country’s economic growth. We investigated the trend and influence of diaspora remittances, foreign direct investment (FDI) and imports on Kenya’s economic growth.
Design/methodology/approach
We used panel data from the World Bank Indicators database from 1973 to 2021. By utilising the autoregressive distributed lag (ARDL) model for econometric analysis and performing computations using R software, we provide valuable insights into both short-term and long-term dynamics.
Findings
In the short term, we establish a non-significant negative impact of FDI and imports on economic growth, contrasting with the positive influence of diaspora remittances. However, in the long term, all three variables – FDI, imports and remittances – emerge as significant determinants of economic growth.
Research limitations/implications
The availability and quality of data on diaspora remittances, FDI inflows, imports and economic indicators may vary, leading to potential data limitations, biases or gaps in the analysis. External factors such as global economic trends, political stability, COVID-19, regulatory changes and natural disasters may influence the study’s findings and should be considered when interpreting the results.
Practical implications
In the short term, the non-significant negative impact of FDI and imports on economic growth suggests that policies promoting FDI and imports may not yield immediate economic growth benefits. Policymakers might need to reassess the effectiveness of current strategies aimed at attracting FDI and managing imports in the short term. The positive influence of diaspora remittances on economic growth underscores the significance of these inflows in supporting economic development. Governments may need to focus on policies that encourage remittance inflows, such as facilitating remittance channels and providing incentives for diaspora investment in the home country. The shift in significance from non-significant in the short term to significant in the long term for FDI, imports and remittances highlights the importance of considering long-term effects in economic planning. Policymakers should adopt strategies that consider the cumulative impact of these factors over time.
Social implications
Diaspora remittances often play a crucial role in alleviating poverty and reducing inequality by providing direct financial support to families. Recognising the importance of remittances in improving living standards, policymakers should ensure that policies support the effective utilisation of remittance inflows to address poverty and inequality challenges.
Originality/value
We therefore contribute original insights by examining the interplay between diaspora remittances, FDI, imports and economic growth over the study period. The emphasis on both short-term and long-term effects adds nicety to understanding their roles in shaping Kenya’s economic growth trail.
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Namarta Kumari Bajaj, Ghulam Abbas, Suresh Kumar Rajput Oad and Tariq Aziz Siyal
This study investigates the impact of geopolitical risk (GPR) on foreign remittances (FRs) for the top remittance-receiving countries.
Abstract
Purpose
This study investigates the impact of geopolitical risk (GPR) on foreign remittances (FRs) for the top remittance-receiving countries.
Design/methodology/approach
The sample includes Mexico, France, Egypt, China, the Philippines, India, Vietnam, Ukraine, Germany and Belgium for the annual period of 1998–2022 using the nonlinear panel autoregressive distributed lag (ARDL) model to determine the asymmetry in the relationship.
Findings
The results suggest that, in the short term, positive GPR shocks have a positive and significant impact on FRs received. On the other hand, the long-run results suggest that adverse GPR shocks negatively affect FRs received in the sampled countries. Additionally, the study confirms the asymmetric impact of GPR on top remittances received in countries.
Research limitations/implications
The policymakers, migrants and recipients should consider the asymmetric nature of GPR while making decisions regarding policies and the transfer of remittances. This information can be used to create more effective policies for controlling and reducing the effects of GPR on overseas remittances, such as assisting migrant workers and developing methods to lessen the volatility of these flows.
Originality/value
Acknowledging the potential fluctuations and uncertainties associated with GPR is crucial to make informed choices regarding remittance-related matters.
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Imran Khan and Darshita Fulara Gunwant
The purpose of this research is to develop a predictive model that can estimate the volume of remittances channeled toward Yemen’s economic reconstruction efforts.
Abstract
Purpose
The purpose of this research is to develop a predictive model that can estimate the volume of remittances channeled toward Yemen’s economic reconstruction efforts.
Design/methodology/approach
This study utilized a time-series dataset encompassing remittance inflows into Yemen’s economy from 1990 to 2022. The Box-Jenkins autoregressive integrated moving average (ARIMA) methodology was employed to forecast remittance inflows for the period 2023 to 2030.
Findings
The study’s findings indicate a downward trajectory in remittance inflows over the next eight years, with projections suggesting a potential decline to 4.122% of Yemen’s gross domestic product by the end of 2030. This significant decrease in remittance inflows highlights the immediate need for concrete steps from economic policymakers to curb the potential decline in remittance inflows and its impact on Yemen’s economic recovery efforts.
Originality/value
The impact of global remittance inflows on various macroeconomic and microeconomic factors has long been of interest to researchers, policymakers, and academics. Yemen has been embroiled in violent clashes over a decade, leading to a fragmentation of central authority and the formation of distinct local alliances. In such prolonged turmoil, foreign aid often falls short, providing only temporary relief for basic needs. Consequently, the importance of migrant remittances in sustaining communities affected by conflict and disasters has increased. Remittances have played a crucial role in fostering economic progress and improving social services for families transitioning from conflict to peace. Therefore, this study aims to estimate and forecast the volume of remittances flowing into Yemen, to assist in the nation’s economic reconstruction.
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This study aims to investigate the relationship between Kosovo remittances, migration and labor force participation and seeks to uncover how migration and remittances, often…
Abstract
Purpose
This study aims to investigate the relationship between Kosovo remittances, migration and labor force participation and seeks to uncover how migration and remittances, often considered separately, interact to shape labor market outcomes across gender, age and education groups.
Design/methodology/approach
To analyze the relationship between remittances, migration and labor force participation, this study leverages multivariate probit (mvprobit) to rectify the endogeneity issue intrinsic from remittances and migration. Utilizing this robust methodological approach allows us to circumvent the limitations traditionally associated with biprobit analysis. The research is grounded in empirical evidence from the Millennium Century Corporation survey in Kosovo.
Findings
The findings indicate that remittances and migration are pivotal determinants in shaping the contours of labor force participation, particularly influencing disparities across gender, age and educational attainment. Further, this study unearthed intriguing evidence suggesting the disincentivizing effect of remittances on labor force participation, alongside the potentially disruptive influence of prospective migration plans.
Originality/value
The novelty of this work lies not only in the context-specific insights it provides into the socio-economic fabric of Kosovo—an area that has hitherto received limited scholarly attention—but also in its methodological innovation. The simultaneous application of mvprobit technique provides a nuanced approach to tackle the inherent endogeneity issue, thereby pushing the methodological frontiers of the field.
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The prevalence of high levels of vulnerable employment in developing countries poses a formidable obstacle to their progress towards achieving SDG 8. While worker remittances…
Abstract
Purpose
The prevalence of high levels of vulnerable employment in developing countries poses a formidable obstacle to their progress towards achieving SDG 8. While worker remittances (remittances) are widely recognised as a potential source of improving the welfare of people experiencing poverty, their effectiveness in alleviating vulnerable employment from a macro perspective remains unclear. Consequently, the study examines the impact of remittances on reducing vulnerable employment.
Design/methodology/approach
The study uses macro-level data from 73 developing countries covering 1990–2021. Vulnerable employment is measured in three forms: total, male, and female. Remittances are measured as a percentage of the gross domestic product. The findings are empirically analysed using dynamic panel data estimation techniques. A two-stage least squares (IV 2SLS) approach addresses remittance endogeneity.
Findings
Two key findings emerge from the study. First, increased remittances are associated with a decline in the total share of workers resorting to vulnerable employment, albeit a modest decline. Second, the remittance surge is associated with more males than females leaving vulnerable employment, indicating its gender-specific effects. These findings remain robust to several checks.
Practical implications
The study's findings underscore the potential of leveraging remittances to reduce vulnerable employment. To this end, selective and targeted policy interventions that promote financial literacy and inclusion, which serve as the cornerstones for effectively utilising remittances, are advised.
Originality/value
To the best of my knowledge, this study is the first to examine the impact of remittances on vulnerable employment on a macro scale. As such, the study makes a novel contribution to understanding how remittances serve as an enabler for SDG 8.
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Khaled Elorabi, Suryati Ishak and Mohamed Maher
Previous literature has investigated the connection amongst remittances, political stability and unemployment in remittance-receiving economies separately. Besides, they did not…
Abstract
Purpose
Previous literature has investigated the connection amongst remittances, political stability and unemployment in remittance-receiving economies separately. Besides, they did not cover the Middle East and North African (MENA) region.
Design/methodology/approach
To this end, this research uses the pooled mean group (PMG) method.
Findings
The findings suggest that the influence of remittances on lowering unemployment accelerates in recipient economies with high levels of political stability.
Practical implications
Policymakers in MENA countries should vigorously pursue political stability, which plays a crucial role in boosting the influence of inward remittances on unemployment alleviation. This is accomplished by establishing solid institutions that contribute to ensuring fair politics, increasing citizens' trust in the government, enhancing the rule of law and protecting investors and prioritizing policies and programs that promote political stability.
Originality/value
This paper, therefore, aspires to empirically examine the impacts of inward remittances on unemployment via the moderating role of political stability in thirteen MENA-receiving countries from 1996 to 2020.
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