Remittances and Economic Growth: Empirical Evidence from Bangladesh India and Sri Lanka

Abu Siddique, E A Selvanathan and Saroja Selvanathan
Additional contact information
Abu Siddique: Business School, The University of Western Australia
E A Selvanathan: Griffith Business School, Griffith University Queensland
Authors registered in the RePEc Author Service: Eliyathamby Antony Selvanathan

No 10-27, Economics Discussion / Working Papers from The University of Western Australia, Department of Economics

Abstract: In many developing countries, remittance payments from migrant workers are increasingly becoming a significant source of export income. This paper investigates the causal link between remittances and economic growth in three countries, Bangladesh, India and Sri Lanka, by employing the Granger causality test under a VAR framework (Granger 1988). Using time series data over a 25 year period, we found that growth in remittances does lead to economic growth in Bangladesh. In India, there seems to be no causal relationship between growth in remittances and economic growth; but in Sri Lanka, a two-way directional causality is found; namely economic growth influences growth in remittences and vice-versa. The paper also discusses a number of policy issues arising from the results of the analysis in relation to remittances in association with liberalisation of financial institutions, gender issues, regulation and enforcement, investment and savings schemes, and promotion and education.

Pages: 26 pages
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
https://www.business.uwa.edu.au/__data/assets/pdf_ ... -Economic-Growth.pdf

Related works:
Journal Article: Remittances and Economic Growth: Empirical Evidence from Bangladesh, India and Sri Lanka (2011)
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:uwa:wpaper:10-27

Access Statistics for this paper

More papers in Economics Discussion / Working Papers from The University of Western Australia, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sam Tang (repec-sbus@uwa.edu.au).