Remittances, Growth and Convergence: Evidence from Developed and Developing Countries

Syed Tehseen Jawaid and Syed Raza

MPRA Paper from University Library of Munich, Germany

Abstract: This study investigates the relationship between workers’ remittances and economic growth by using 7 years average annual data of 113 countries from the period 2003 to 2009. Results indicate the positive and significant relationship between workers’ remittances and economic growth in sample of low income, middle income, high income and all countries. Results also show that the workers’ remittances are more contributing in high income countries as compare to low and middle income countries. Sensitivity analysis has been performed to test the consistency of initial results and confirms that the results are robust. Unconditional convergence results confirm the convergence in all categories. Results confirm that countries are coming together with respect to per capita income. Results of conditional convergence based on workers’ remittances model suggest the low and middle income countries are converging each other more rapidly. Conversely, results show that high income and all countries models are converging each other but at slower pace in conditional model with workers’ remittances as compare to unconditional model.

Keywords: Remittances; Economic Growth; Cross Country Analysis (search for similar items in EconPapers)
JEL-codes: F24 F43 O47 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-cwa, nep-fdg and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:39002

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