Search

Remittances are an important source of cash flows for lower-middle income countries, but may also enhance vulnerability to shocks if these financial flows are concentrated among a few sources. We utilize descriptive statistics and panel econometric models estimated via generalized least squares (GLS) to investigate whether remittances are a source of vulnerability for the newly independent states (NIS) arising from the dissolution of the former Soviet Union, who receive a substantial proportion of remittance flows from the Russian Federation. Analytical results reveal remittance inflows from the Russian Federation to the NIS, are more significant than remittance inflows from the Russian Federation to all other countries. Model results also indicate remittances to the NIS are more susceptible to geopolitical and economic shocks affecting the Russian Federation than are remittance inflows to other countries. From a policy perspective, our results suggest policymakers should strive to eliminate barriers to migration between countries to reduce the likelihood of concentrated financial flows, since concentrated remittances sources represent potential exposure to economic and geopolitical shocks of sending countries. [Display omitted] • Investigate remittance network vulnerability when inflows are undiversified. • Focus analysis on newly independent states (NIS) from dissolution of Soviet Union. • Remittances do not enhance economic vitality of NIS relative to other countries. • NIS remittances from the Russian Federation more significant than other countries. • NIS remittances more susceptible to shocks to Russian Federation than other countries. [ABSTRACT FROM AUTHOR]

Abstract: Univariate indicators such as employment are often used to benchmark economic growth at the local and regional levels. However, the tremendous technological and industrial changes in the U.S. economy in the second half of the twentieth century suggest this practice may be outdated. In fact, the singular use of univariate indicators to benchmark regional development may obscure a much richer and more complex web of economic processes. Given the potential complexities associated with regional benchmarking in the current global economy, this paper will explore the numerical differences in economic performance presented by popular univariate indicators of regional growth. Results demonstrate a univariate approach to benchmarking presents an incomplete snapshot of regional performance that is incapable of capturing the multifaceted nature of economic growth in today’s global knowledge economy. Although job creation remains an important component to development efforts, many other factors should be considered in evaluations of regional performance, including the industries in which jobs are created and their associated wages. [Copyright &y& Elsevier]