Do the Migrant Workers’ Remittances foster Economic Growth in the South Asian Countries? A Panel Analysis

Arjina Akter, Sonia Afrin Ale and Sheikh Monjurul Islam
Additional contact information
Arjina Akter: MA student, Central Michigan University, USA
Sonia Afrin Ale: PhD Student, University of Pittsburgh, USA
Sheikh Monjurul Islam: Senior Manager, Sonali Bank, Bangladesh

International Journal of Economics and Financial Issues, 2024, vol. 14, issue 6, 195-200

Abstract: The purpose of this study is to investigate the effect of migrant workers’ remittances on economic growth in South Asian countries using panel data from 1980 to 2020, resulting in 123 observations. I consider here the top three remittance-receiving countries in South Asia, namely Bangladesh, India, and Pakistan. The growth model is estimated using pooled ordinary least squares (OLS), fixed-effects, and random-effects approaches. The empirical results did not support the hypothesis and it indicates that migrant workers’ remittances inflow growth does not lead to growth in the three South Asian countries based on the fixed-effects method since the random-effects model is rejected in statistical tests. The analysis suggests that a 1% increase in growth of remittance inflows decreases the economic growth by approximately 1.1%, and a 1% increase in foreign direct investment inflow decreases the economic growth of sample countries by roughly 0.14%. The regression results also indicate a positive impact of trade openness on economic growth. Additionally, the study shows no significant relationship between inflation and economic progress.

Keywords: Economic Growth; Remittance; Pooled Ordinary Least Squares Model; Fixed Effect Model; Random Effect Model (search for similar items in EconPapers)
JEL-codes: C33 F21 F24 O47 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econjournals.com/index.php/ijefi/article/download/16735/8293 (application/pdf)
https://www.econjournals.com/index.php/ijefi/article/view/16735 (text/html)

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:eco:journ1:2024-06-21

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().