Financial Development, Remittances and Economic Growth: Evidence Using a Dynamic Panel Estimation

Murshed Chowdhury

Margin: The Journal of Applied Economic Research, 2016, vol. 10, issue 1, 35-54

Abstract: This study examines how remittances can influence economic growth under different levels of financial development. Using a dynamic panel estimation of 33 top remittance-recipient developing countries from 1979 to 2011, the results suggest that financial development neither works as a substitute nor a complement for the remittance–growth nexus. While remittances are effective in promoting economic growth, the influence of financial variables is found to be insignificant. More developed financial systems may attract more remittances; however, the interaction effect of financial development and remittances is not growth enhancing. Promoting financial literacy, reducing the cost of sending remittances through banks and encouraging the overall use of formal financial institutions may induce a stronger remittance–growth nexus. JEL Classification: F24, F41, F63, F68

Keywords: Financial Development; Remittance; Economic Growth; Generalised Method of Moments; Dynamic Panel Estimation (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (41)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0973801015612666 (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:sae:mareco:v:10:y:2016:i:1:p:35-54

DOI: 10.1177/0973801015612666

Access Statistics for this article

More articles in Margin: The Journal of Applied Economic Research from National Council of Applied Economic Research
Bibliographic data for series maintained by SAGE Publications ().