Remittance and domestic labor productivity: evidence from remittance recipient countries

Md Al Mamun, Kazi Sohag (), Gazi Salah Uddin and Muhammad Shahbaz

MPRA Paper from University Library of Munich, Germany

Abstract: For countries with significant labor force like China, India, Bangladesh, Pakistan etc. any long-run growth strategy should focus on augmenting the domestic labor productivity. The advent of globalization and factor mobility has given a recipe to reap up gains from labor abundance for most of the labor abundant countries by strategically converting abundant labor into capital. However, remittance inflow may become counterproductive strategy for growth, if it is viewed within the work-leisure framework. Using heterogeneous non-stationary panel data with cross-sectional bias this empirical study explores the best fitted estimator to explain remittance and labor productivity dynamics for 21 top remittance recipient countries of the world. Our results suggest that though remittance has a positive impact on domestic labor productivity; however, there is new evidence that such impact diminishes after certain level.

Keywords: Labor productivity; Foreign Remittance (search for similar items in EconPapers)
JEL-codes: C1 (search for similar items in EconPapers)
Date: 2015-01-11, Revised 2015-02-12
New Economics Papers: this item is included in nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/62177/1/MPRA_paper_62177.pdf original version (application/pdf)

Related works:
Journal Article: Remittance and domestic labor productivity: Evidence from remittance recipient countries (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:62177

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().