Remittances, Investment, and Economic Growth: Substitutability or Complementarity?

Jung-hwan Cho ()
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Jung-hwan Cho: Sunchon National University, Republic of Korea

Journal of Economic Development, 2025, vol. 50, issue 1, 79-90

Abstract: This study analyzes how overseas remittances can affect the economic growth of recipient countries through domestic investment. According to panel data of 162 countries for the period 2000-2020, remittances play a role in increasing economic growth through domestic investment. Additionally, when the sample countries are limited to low-income countries, remittances tend to have a positive effect on economic growth. However, the effect of remittances on economic growth is diminished when the level of domestic investment is low. Therefore, low-income countries should include remittances as a source of increased domestic investment in their implementation policy.

Keywords: Remittances; Economic Growth; Panel Data (search for similar items in EconPapers)
JEL-codes: F22 F24 O40 (search for similar items in EconPapers)
Date: 2025
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