Revisiting the linkage between remittances inflow and economic growth: A semi-parametric estimation with panel data

Arafet Farroukh, Manel Mazioued and Jennifer Pédussel Wu

No 238/2024, IPE Working Papers from Berlin School of Economics and Law, Institute for International Political Economy (IPE)

Abstract: We investigate the relationship between remittances inflow and economic growth in a sample of 65 emerging countries over the period 1988-2018 using the semi-parametric panel data model with fixed effects as proposed by Baltagi and Li (2002). Our empirical results show that the effect of remittances inflow on economic growth exhibits a highly nonlinear pattern, which sheds new light on the remittances-growth nexus and provides evidence of a nonlinear relationship.

Keywords: Remittances; Growth; Nonlinear effects; Semi-parametric regression; Panel data; Emerging countries (search for similar items in EconPapers)
JEL-codes: C14 F43 O15 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-dev, nep-fdg and nep-gro
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