Impact of Remittances on Economic Growth in Developing Countries: The Role of Openness

Sayantan Ghosh Dastidar ()
Additional contact information
Sayantan Ghosh Dastidar: University of Derby

No 7208406, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: The paper examines the empirical relationship between remittances and economic growth for a sample of 62 developing countries over the time period 1990-2014. Remittances seem to promote growth only in the ?more open? countries. The study uses a variety of indicators of ?openness? to test the hypothesis that openness of a country increases the growth effects of remittances. The finding, remittances lead to higher growth in open countries, is robust regardless of how ?openness? is defined. Conversely, no significant effect of remittances on growth could be detected in the case of ?less open? countries. That is because remittances are in themselves not sufficient for growth. The extent of the benefit depends on domestic institutions and macroeconomic environment in the receiving country. Unlike the ?less open? countries, ?more open? countries have better institutions and better financial markets to take advantage of the remittances income and channelise them into profitable investments which, in turn, accelerates the rate of economic growth in these countries.

Keywords: Remittances; Economic Growth; Openness; Developing Countries; Panel Data (search for similar items in EconPapers)
JEL-codes: F24 F41 F43 (search for similar items in EconPapers)
Pages: 1 page
Date: 2018-06
New Economics Papers: this item is included in nep-gro
References: Add references at CitEc
Citations:

Published in Proceedings of the Proceedings of the 36th International Academic Conference, London, Jun 2018, pages 71-71

Downloads: (external link)
https://iises.net/proceedings/36th-international-a ... =72&iid=012&rid=8406 First version, 2018

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: https://EconPapers.repec.org/RePEc:sek:iacpro:7208406

Access Statistics for this paper

More papers in Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences
Bibliographic data for series maintained by Klara Cermakova ().