Remittances Inflows and Fiscal Space in Receiving Countries

Sèna Kimm Gnangnon
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Sèna Kimm Gnangnon: World Trade Organization, Switzerland

Remittances Review, 2020, vol. 5, issue 2, 115-141

Abstract: The current article contributes to the literature on the effect of remittances inflows on public finance by examining the effect of remittances inflows on fiscal space. Using a sample of 109 receiving countries over the period 1980-2015, the analysis has shown that remittances inflows contribute to the expansion of fiscal space in relatively less developed receiving countries, while in advanced economies, these capital inflows lead to a shrinking of fiscal space. The analysis has additionally revealed that countries that experience a higher economic growth consistently experience an expansionary fiscal space effect of remittances inflows.

Keywords: Remittances inflows; Fiscal Space; receiving countries; financial resources (search for similar items in EconPapers)
JEL-codes: E62 F24 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.33182/rr.v5i2.941

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