Macroeconomic Impact of Remittances on Output Growth: Evidence from Turkey

Aysıt Tansel () and Pinar Yasar ()
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Pinar Yasar: State Planning Organization

No 1002, ERC Working Papers from ERC - Economic Research Center, Middle East Technical University

Abstract: This study estimates a Keynesian simultaneous, dynamic macroeconometric model to investigate the impact of remittances on key macro variables such as consumption, investment, imports and income in Turkey. The estimated impact and dynamic multipliers indicate that impact of remittances on consumption, imports and income are all positive and reduce gradually while that on investment wears out in the second year. The impact multiplier for income implies a substantial increase in income due to remittances through the multiplier process. The remittances-induced output growth rate is highest during the early 1970s and the early 1980s, but negligible during the other years.

Keywords: Remittances; Dynamic Model; Remittances-Induced Output Growth (search for similar items in EconPapers)
JEL-codes: C52 F21 F22 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2010-06, Revised 2010-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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http://erc.metu.edu.tr/en/system/files/menu/series10/1002.pdf First version, 2010 (application/pdf)

Related works:
Working Paper: Macroeconomic Impact of Remittances on Output Growth: Evidence from Turkey (2011)
Journal Article: Macroeconomic impact of remittances on output growth: Evidence from Turkey (2010)
Working Paper: Macroeconomic Impact of Remittances on Output Growth: Evidence from Turkey (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:met:wpaper:1002

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