Workers’ remittances and government size

Kevin Williams

Review of Development Economics, 2018, vol. 22, issue 3, e115-e134

Abstract: In this paper I use a panel of 133 developing countries for the period 1972 to 2012 to estimate the effect of workers’ remittances on the size of government. Controlling for country and period fixed effects that jointly affect workers’ remittances and government size, the paper finds that workers’ remittances are associated with larger government. The paper further examines whether democratic institutions mediate the relationship between workers’ remittances and government size. Democratic institutions do not significantly mediate the effect that workers’ remittances have on the size of government.

Date: 2018
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