Impact of trade openness, remittances, capital inflows & financial development on income in Vanuatu

Ronald Kumar

MPRA Paper from University Library of Munich, Germany

Abstract: In this study, using bounds approach and annual data for the period 1981-2008, the short and long-run effects of remittances and trade openness on income in Vanuatu are estimated. The results show trade openness and remittances having positive and significant effects, with no significant effects from financial development (FIN), foreign direct investment (FDI), and official development aid (ODA). FDI and ODA in this sense behave somewhat differently than remittances. Therefore a greater liberalization of goods and services market in general and short-term temporary movements of people in particular to boost remittances inflows and improving the overall institutional infrastructure is put forward as priority policy measures.

Keywords: Remittances; trade; economic growth; FDI; financial sector development; ODA; bounds test; Vanuatu (search for similar items in EconPapers)
JEL-codes: F24 N17 (search for similar items in EconPapers)
Date: 2010-12-30
New Economics Papers: this item is included in nep-dev
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:33221

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