Economics at your fingertips  

Migrant Workers’ Remittances and Economic Growth: The Role of Financial Development

Nusrate Aziz, Somnath Sen, Puyang Sun () and Lichao Wu

MPRA Paper from University Library of Munich, Germany

Abstract: Although the growing importance of workers’ remittance in international capital flow is indubitable, it is apparent that some countries can take full advantage from this cash flow while the others cannot attain any significant benefit from it. Financial development, which may facilitate the conversion of workers’ remittance into a productive investment and thereby economic growth, can be considered to be one of the influential factors. However, there is no consensus in existing literature about the impact of workers’ remittance on economic growth in the presence of financial development. This study therefore examines whether financial development catalyses the transmission channel from workers’ remittance to economic growth. The system GMM and the fixed effects estimators are used for panel data analysis. Our analysis indicates that methods matter in studying the effect of workers’ remittance and financial development on growth. Estimates based on system GMM indicate that the workers’ remittance through financial development significantly accelerate economic growth. We also find that in the face of financial liberalization and trade openness the workers’ remittance significantly fosters economic growth.

Keywords: workers’ remittance; financial development; economic growth. (search for similar items in EconPapers)
JEL-codes: C23 F24 O43 (search for similar items in EconPapers)
Date: 2015-09-30
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) original version (application/pdf)

Related works:
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:

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 ().

Page updated 2022-06-17
Handle: RePEc:pra:mprapa:66992