The impact of remittances on human development in developing countries: an empirical evidence from cross-sectionally dependent heterogeneous panel data with structural breaks

Joseph Siani ()
Additional contact information
Joseph Siani: IESEG School of Management

Economics Bulletin, 2022, vol. 42, issue 4, 2135 - 2149

Abstract: This paper applies second generation panel unit root, panel cointegration and panel vector error-correction Granger causality tests that allow for country specific heterogeneity, cross-country dependence and multiple structural breaks in a panel of 100 developing countries and shows that in the short-run, there is evidence of (i) a bidirectional causal relationship between economic growth and human development; (ii) a unidirectional causal relationship from remittances to human development and (iii) a bidirectional causal relationship between economic growth and remittances. Our results further suggest that in the long-run, both economic growth and remittances jointly Granger-cause human development and that it takes more than fourteen years for human development to converge to its long-run equilibrium in response to changes in economic growth and remittances. there is evidence of (i) a bidirectional causal relationship between economic growth and human development; (ii) a unidirectional causal relationship from remittances to human development and (iii) a bidirectional causal relationship between economic growth and remittances. Our results further suggest that in the long-run, both economic growth and remittances jointly Granger-cause human development and that it takes more than fourteen years for human development to converge to its long-run equilibrium in response to changes in economic growth and remittances.

Keywords: remittances; human development; developing countries; panel data; cross-sectional dependence; heterogeneity; structural breaks (search for similar items in EconPapers)
JEL-codes: F2 I3 (search for similar items in EconPapers)
Date: 2022-12-30
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2022/Volume42/EB-22-V42-I4-P176.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-22-00321

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().