Remittances, growth and poverty: New evidence from Asian countries

The present study re-examines the effects of remittances on growth of GDP per capita using annual panel data for 24 Asia and Pacific countries. The results generally confirm that remittance flows have been beneficial to economic growth. However, our analysis also shows that the volatility of capital...

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Bibliographic Details
Published in:Journal of policy modeling 2014-05, Vol.36 (3), p.524-538
Main Authors: Imai, Katsushi S., Gaiha, Raghav, Ali, Abdilahi, Kaicker, Nidhi
Format: Article
Language:English
Subjects:
Asia
Asia Pacific Region
Capital flow
Economic growth
Economic impact
GDP
Gross Domestic Product
Per capita output
Poverty
Poverty alleviation
Remittances
Studies
Volatility
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Summary:The present study re-examines the effects of remittances on growth of GDP per capita using annual panel data for 24 Asia and Pacific countries. The results generally confirm that remittance flows have been beneficial to economic growth. However, our analysis also shows that the volatility of capital inflows such as remittances and FDI is harmful to economic growth. This means that, while remittances contribute to better economic performance, they are also a source of output shocks. Finally, remittances contribute to poverty reduction – especially through their direct effects. Migration and remittances are thus potentially a valuable complement to broad-based development efforts.
ISSN:0161-8938
1873-8060
DOI:10.1016/j.jpolmod.2014.01.009