 Macroeconomic determinants of migrant remittances to Caribbean countries: panel unit roots and cointegrationDillon Alleyne *,
Claremont D. Kirton and
Mark Figueroa ()
Journal of Developing Areas, 2008, vol. 41, issue 2, 137-153 Abstract: This article examines the macroeconomic factors influencing the flow of remittances to selected English-speaking Caribbean countries. A balanced two way fixed effects (FE) model, a random effects (RE) model and the adjusted fully modified ordinary least squares (FMOLS) model (designed to correct biases in OLS)are employed in estimating a relationship between per capita remittances and selected macroeconomic variables. This article also examines the time series properties of the data within a panel unit root and cointegration framework and in this respect, adds an important new dimension to the time series models on remittances by removing the possibility of a spurious relationship (Pedroni 1995,1997, 2000). The results strongly suggest that there is cointegration among the variables, and that remittances are influenced not only by altruistic motives but also by the investment motive in financial instruments. In addition, the results further indicate that there may be scope for public policy to increase these flows. Keywords: Remittances; Caribbean; Panel unit roots; Cointegration (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:jda:journl:vol.41:year:2008:issue2:pp:137-153 Access Statistics for this article More articles in Journal of Developing Areas from Tennessee State University, College of Business Contact information at EDIRC. |
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