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Remittances, unemployment, growth and development: a panel cointegration approach.
- Source :
- Applied Economics Letters; Mar2023, Vol. 30 Issue 5, p663-668, 6p, 4 Charts
- Publication Year :
- 2023
-
Abstract
- This paper analyses the short-run and long-run dynamics of the relationship between remittances, unemployment, economic growth and human development in developing countries. Vector Autoregressive Model methodology (VECM) was used to examine the short-run dynamics and direction of causality in three separate panels of 23 low-income, 42 lower middle-income and 48 upper middle-income countries for the 1990 and 2019 period. For the estimation of long-run elasticities of remittance flows, Fully Modified (FMOLS) and Dynamic Ordinary Least Squares (DOLS) estimation techniques were used. According to the findings of this study, in low-income economies, the direction of causality is from GDP to remittances in the short run. The unemployment rate has a positive long-run effect on HDI in low-income countries, indicating the importance of underutilized labour force in low-income countries. Although remittances affect human development more in low-income economies compared to other developing countries, unemployment in the country of origin has no significant relationship between remittances and development in low-income countries. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 13504851
- Volume :
- 30
- Issue :
- 5
- Database :
- Complementary Index
- Journal :
- Applied Economics Letters
- Publication Type :
- Academic Journal
- Accession number :
- 161761633
- Full Text :
- https://doi.org/10.1080/13504851.2021.2009755