Are the Direct and Indirect Growth Effects of Remittances Significant?

摘要

In this study, we have estimated the growth effects of remittances with data from 40 high remittances recipient countries and found that remittances have their growth effects through four main growth channels. Although these growth effects are small, they are not altogether negligible.rnThere are important differences between the specification and estimation methodology of this study and in the earlier studies. First, our specification is an improvement on the arbitrary specifications in the previous works. Our specification is based on the growth model of Solow (1956), whereas earlier works have used arbitrary specifications based on unknown endogenous growth models.