The impact of remittances on economic growth in small-open developing economies

Christian R.K. Ahortor and Deodat Adenutsi

MPRA Paper from University Library of Munich, Germany

Abstract: The essence of this study is to verify the macroeconomic implications of cross-border remittances for economic growth prospects of small-open developing economies for the period, 1996-2006. A set of dynamic panel model, specified within the framework of Blundell-Bond Generalized Method of Moment (GMM) was empirically analyzed. Using annual panel data from 31 small-open developing countries from Sub-Saharan Africa, Latin America and the Caribbean, this paper argues that, contemporaneously, remittances contribute significantly to economic growth in small-open developing economies. Remittances, however, contribute more to long-run economic growth in Latin America and the Caribbean than to Sub-Saharan Africa. In dynamic terms, remittances retard economic growth, but with overall positive impact across these regions.

Keywords: Remittances; Economic Growth; Panel Data; Latin America and Caribbean; Sub-Saharan Africa (search for similar items in EconPapers)
JEL-codes: C33 F24 O47 O54 O55 R23 (search for similar items in EconPapers)
Date: 2008-09-14
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Citations: View citations in EconPapers (13)

Published in Journal of Applied Sciences 18.9(2009): pp. 3275-3286

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:37109

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