Through which channels can remittances spur economic growth in MENA countries?

Sami Ben Mim and Mohamed Sami Ben Ali

No 2012-8, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: This paper studies the remittances' effect on economic growth. Using panel data techniques, the authors estimate several specifications to provide support of such relationship for MENA countries over the period 1980-2009. The findings provide new robust evidence on how remittances are used in MENA countries and show the main channels which may interfere in this process. Estimation outcomes show that the most important part of remittances is consumed and that remittances stimulate growth only when they are invested. Moreover, empirical results suggest that remittances can enhance growth by encouraging human capital accumulation. Human capital is therefore an effective channel through which remittances stimulate growth in MENA countries.

Keywords: Workers' remittances; economic growth; panel data; MENA zone (search for similar items in EconPapers)
JEL-codes: E21 F21 G22 J61 O16 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-ara and nep-fdg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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https://www.econstor.eu/bitstream/10419/55260/1/684353318.pdf (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:20128

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