Search results

1 – 10 of over 3000
To view the access options for this content please click here
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

Keywords

To view the access options for this content please click here
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

Keywords

To view the access options for this content please click here
Article
Publication date: 21 September 2021

Ahamed Lebbe Mohamed Aslam and Selliah Sivarajasingham

This study investigates the long-run relationship between workers' remittances and human capital formation in Sri Lanka by using the macro-level time series data during…

Abstract

Purpose

This study investigates the long-run relationship between workers' remittances and human capital formation in Sri Lanka by using the macro-level time series data during the period of 1975–2020.

Design/methodology/approach

In this study, the augmented Dickey–Fuller (ADF) and Philips–Perron (PP) unit root tests, the autoregressive distributed lag (ARDL) bounds cointegration technique, the Granger causality test, the forecast error variance decomposition technique and impulse response function analysis were employed as the analytical techniques.

Findings

In accordance with the results of unit root tests, the variables used in this study are mixed order. Results of cointegration confirm that workers' remittances in Sri Lanka have both long-run and short-run beneficial relationship with human capital formation. The Granger causality test results indicate that there is a two-way causal relationship between workers' remittances and human capital formation. The results of forecast error variance decomposition expose that innovation of workers' remittances contributes to the forecast error variance in human capital in bell shape. Further, the empirical evidence of impulse response function analysis reveals that a positive standard deviation shock to workers' remittances has an immediate significant positive impact on human capital formation in Sri Lanka for a period of up to ten years.

Practical implications

This research provides insights into the workers' remittances in human capital formation in Sri Lanka. The findings of this study provides evidence that workers' remittances help to produce human capital formation.

Originality/value

By using the ARDL Bounds cointegration and other techniques in Sri Lanka, this study fills an important gap in academic literature.

Details

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

Keywords

To view the access options for this content please click here
Article
Publication date: 19 August 2021

Zakaria Lacheheb, Normaz Wana Ismail, N.A.M. Naseem and Ly Slesman

This study aims to examine the linear and nonlinear remittance–institutional quality link in developing countries.

Abstract

Purpose

This study aims to examine the linear and nonlinear remittance–institutional quality link in developing countries.

Design/methodology/approach

This study investigates the nonlinear relationship between remittance and political institutional quality in a panel of 97 developing countries using annual data of over nine years from 2009 to 2017. The estimated model uses system generalized method of moments for three political institutions indicators, namely, democracy, political stability and civil liberties.

Findings

The results revealed that remittance has a significant inverted U-shape impact on political institution’s indicators. Therefore, before the turning point, remittance is associated with high level of democracy, more stable political system and more civil freedom. While moving after the turning point indicates low level of political institution in the country.

Originality/value

The authors certify that this is the original paper. It has not been previously published and is not currently under submission or in press elsewhere.

Details

Studies in Economics and Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1086-7376

Keywords

To view the access options for this content please click here
Article
Publication date: 17 August 2021

Hem C. Basnet, Ficawoyi Donou-Adonsou and Kamal Upadhyaya

The purpose of this paper is to examine whether remittances induce inflation in South Asian countries, namely, Bangladesh, India, Nepal, Pakistan and Sri Lanka.

Abstract

Purpose

The purpose of this paper is to examine whether remittances induce inflation in South Asian countries, namely, Bangladesh, India, Nepal, Pakistan and Sri Lanka.

Design/methodology/approach

This study uses panel cointegration and Pooled Mean Group techniques covering from 1975 to 2017 to estimate the long-run and the short-run effect of remittances on inflation.

Findings

The estimated results suggest that the inflationary impact of remittances in South Asia depends on the time length. The inflow tends to lower inflation in the short run, whereas it increases in the long run. The findings highlight the regional peculiarity in the impact of remittances on the price level. The results are statistically significant and are confirmed by the Mean Group estimation as well.

Originality/value

Most past studies investigating the nexus between remittances and inflation in the South Asian context examine either these countries individually or include them all in a pool of big cross-sections. This study contributes to the literature by addressing this void. The South Asian countries should not generalize the earlier findings on the link between remittance inflows and inflation, as the short-run effect is different from the long run. Thus, these countries would be better off designing long-run policies that are different from the short run.

Details

Journal of Financial Economic Policy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-6385

Keywords

To view the access options for this content please click here
Article
Publication date: 30 July 2021

Sarah Salahuddin, Muhammad Mehedi Masud and Kwek Kian Teng

The purpose of this study is to examine the impact of remittance inflow on households’ savings behaviour in Bangladesh. Remittances are considered as the countercyclical…

Abstract

Purpose

The purpose of this study is to examine the impact of remittance inflow on households’ savings behaviour in Bangladesh. Remittances are considered as the countercyclical flow of income for its recipient economies. It surges the liquidity of the households receiving remittances, allows them to endure local economic shocks and facilitates them to practice productive activities. Remittances often form a big pool of resources for investment which complement the national savings and support the country’s growth through higher rates of capital accumulation. Therefore, if a significant portion of the remittance is used for savings it can lead to prominent economic growth in the long term.

Design/methodology/approach

Existing literature indicates remittance-receiving households have a greater propensity to use remittance income to meet basic consumption. However, based on the survey conducted by the Bangladesh Bureau of Statistics on remittances and household savings (SIR, 2016) and using the ordinary least square regression analysis method, to identify the connection between remittances and household’s saving (SIR, 2016) and using the ordinary least square regression analysis method, to identify the connection between remittances and household’s savings behaviour in Bangladesh.

Findings

The findings of this study represent remittances encourage households to pursue different kinds of savings in Bangladesh. Savings are made in the form of opening savings accounts, deposit pension scheme/fixed deposits/Bonds, insurance policies, also savings through non-governmental organizations, cooperative societies and savings at home. Other than remittances the demographic characteristics of the household head also influence the savings choices.

Originality/value

To enable the implementation of appropriate policies to boost savings, analysis from both perspectives; the household and the national level, requires strong vigilance and surveillance.

Details

Society and Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-5680

Keywords

To view the access options for this content please click here
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

To view the access options for this content please click here
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

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. 6 no. 3
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

Keywords

1 – 10 of over 3000