 Brain Drain Versus Brain Gain: The Study of Remittances in Southeast Asia and Promoting Knowledge Exchange Through DiasporasAsia Development Bank Working Papers from eSocialSciences Abstract: The study attempts to identify the macroeconomic determinants of remittance inflows in South Asian countries. It uses additively separable utility function as theoretical framework and the Arellano-Bover/Blundell-Bond Systems of Generalized Method of Moments (SGMM) method as empirical framework. We use data on five countries in South Asia over the period 1976-2012. Results indicate that the remittance inflows in South Asia are altruistically motivated by the economic condition of home country whereas they are motivated by self-interest in case of the host country’s economic condition. The emigrant stocks abroad, financial development and political rights significantly and positively affect the remittance inflows. The impact of 9/11, 2001 on remittance inflows is also found significantly positive. This is probably as a result of receiving more remittances through formal channel instead of informal channel due to strict monetary regulation. The study implies that well managed financial, political and macroeconomic environment and pro- growth policy formulation are crucial to attract more remittances in this region. Keywords: reamittances; inflows; South Asia; remittance inflows; self-interest; economic condition; emigrant stocks; political rights; financial development (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ess:wpaper:id:11219 Access Statistics for this paper More papers in Working Papers from eSocialSciences |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.