Addressing the effect of workers' remittance on economic growth: evidence from MENA countries

被引:21
|
作者
Kratou, Hajer [1 ,2 ]
Gazdar, Kaouthar [3 ,4 ]
机构
[1] Univ Carthage, LEFA IHEC, Tunis, Tunisia
[2] Univ Auvergne, CERDI, Clermont Ferrand, France
[3] Univ Sousse, Fac Econ & Management Sousse, Sousse, Tunisia
[4] Univ Carthage, LEFA IHEC, Tunis, Tunisia
关键词
Institutions and institutional analysis; Economic growth; Financial development; Remittances;
D O I
10.1108/IJSE-08-2013-0189
中图分类号
F [经济];
学科分类号
02 ;
摘要
Purpose - The purpose of this paper is to study the effect of remittances on economic growth in MENA region. More precisely this study tries first to explore the short-run and the long-run relationship between remittances and economic growth. Second, the authors address how the local financial development and institutional environment influence a country's capacity to take advantage from remittances. Design/methodology/approach - The panel data unit-root test as well as the panel data co-integration is used for the purpose of the long-run remittances growth relationship and the IV technique with GMM option is adopted to study the short-run link. Findings - This paper provides empirical evidence that remittances have a positive effect on economic growth in the long run and a negative effect in short run. The short-run effect of remittances on economic growth is conditional. In fact, it depends in the levels of financial development and institutional quality, respectively. Practical implications - As practical implications, policy interventions, to improve the functioning of governance institutions, enforcing regulation and political stability, enhancing financial system and socio-economic environment are also crucial for increasing the benefit effects of remittances. Originality/value - The research is an extension of previous evidence in two ways; the authors have examined the long-run and short-run remittances-growth relationship in the first time. In the second time, the authors have explored the conditional remittances-growth relationship in MENA countries. Specifically, the authors have examined whether the remittances-growth nexus is affected by financial development and institutional quality levels in MENA countries.
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页码:51 / 70
页数:20
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