Through which channels can remittances spur economic growth in MENA countries?

This paper studies the remittances' effect on economic growth. Using panel data techniques, the authors estimate several specifications to provide support of such relationship for MENA countries over the period 19802009. The findings provide new robust evidence on how remittances are used in ME...

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Bibliographic Details
Published in:Economics. The open-access, open-assessment e-journal open-assessment e-journal, 2012-01, Vol.1
Main Authors: Mim, Sami Ben, Ali, Mohamed Sami Ben
Format: Article
Language:English
Subjects:
Accumulation rate
Economic growth
Growth theory
Human capital
Panel data
Remittances
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Summary:This paper studies the remittances' effect on economic growth. Using panel data techniques, the authors estimate several specifications to provide support of such relationship for MENA countries over the period 19802009. The findings provide new robust evidence on how remittances are used in MENA countries and detect the main channels which may interfere in this process. Estimation outcomes show that the most important part of remittances is consumed and that remittances stimulate growth only when they are invested. Moreover, empirical results suggest that remittances can enhance growth by encouraging human capital accumulation. Human capital is therefore an effective channel through which remittances stimulate growth in MENA countries. -- workers' remittances ; economic growth ; panel data ; MENA zone
ISSN:1864-6042
1864-6042