Remittances and the Dutch Disease: Evidence from Panel Data for 18 Developing Countries

Katsuya Ito

International Economic Journal, 2019, vol. 33, issue 1, 1-8

Abstract: In this paper, using the GMM technique we attempt to empirically investigate the Dutch disease effect of remittances. The analyses are based on an annual balanced panel data set for 18 developing countries, which have remittances to GDP ratio of 5 percent and above, over the years 1999–2015. It is found that an inflow of remittances has a positive effect on economic growth, whereas it leads to a depreciation of the real effective exchange rate.

Date: 2019
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DOI: 10.1080/10168737.2019.1569709

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