The international global migration has produced an exponential growth of remittances, which can be defined as the transfer of funds from one country to another. This study will inspect the macroeconomic impact of remittance inflow on economic growth using panel regression, covering the period from 1981 to 2020 and focusing on a sample of 152 countries, then filtered by 4 geographical regions for additional analysis. Like many studies before, a consensus about an overall effect of the flows on global level could not be reached from his study following the analysis of the general sample. However, on a more specific regional analysis like this study intended to provide, the results have given slightly clearer answers. Finding a positive significant coefficient in the sample regression of the African nations pushes forward the claim of remittances playing an important role for increasing the cap of savings and thus investment options in developing nations. On the other hand, a negative significant coefficient for the Caribbean, Central, and South American countries’ sample suggests support for the claim that higher remittance inflows are probable reaction to, not an actual reason for, decreasing domestic output i.e., provides support for their counter-cyclical nature.
"Econometric Analysis of the Relationship Between Domestic Economic Growth and Levels of Inflow of Remittances in Developing Countries,"
Dartmouth Undergraduate Journal of Politics, Economics and World Affairs: Vol. 1:
4, Article 8.
Available at: https://digitalcommons.dartmouth.edu/dujpew/vol1/iss4/8
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