Development aid, remittances inflows and wages in the manufacturing sector

Sèna Kimm Gnangnon ()
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Sèna Kimm Gnangnon: World Trade Organization

Journal of Social and Economic Development, 2020, vol. 22, issue 2, No 3, 278-304

Abstract: Abstract This article has considered the effect of development aid and remittances inflows on wages in the manufacturing sector of recipient economies. The empirical analysis has used a sample of 95 countries over the period 1969–2016 and relied on the two-step system generalized methods of moments. Results show for the full sample that while remittances influence positively wages (notably in remittances-dependent countries), development aid exerts a negative effect on wages. Additionally, the effects of development aid and remittances on wages depend on the prevailing real exchange rate as well as on the values of manufacturing exports.

Keywords: Development aid; Remittances; Wages in the manufacturing sector; Real exchange rate; Manufactured exports; F35; J30; O14 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s40847-020-00110-4

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