Abstract
This study investigates the effect of personal remittance inflows and financial development on the economic growth of 29 economic transition countries for the period of 2000–2015. Dynamic panel system GMM estimation results show that there is a positive relationship between remittance inflows and economic growth. It also shows that remittances and the level of financial development have a substitute relationship in promoting economic growth. So the remittance inflows have a positive effect on economic growth for the countries with low levels of financial development, but they have a negative effect on such growth for countries with moderate to high levels of financial development.
| Original language | English |
|---|---|
| Pages (from-to) | 472-492 |
| Number of pages | 21 |
| Journal | International Economic Journal |
| Volume | 34 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 2020 Jul 2 |
Bibliographical note
Funding Information:This paper was presented at The Association of Korean Economic Studies2018 Annual Domestic Conference, Seoul, Korea, November 2018. Also, this paper is based on part of the Ph.D. thesis ofShijun Cao in Economics at Korea University and was supported by Korea University grants (K1710061). We thank the editorand the two anonymous referees for their insightful comments that helped improve the quality of the paper.
Publisher Copyright:
© 2020 Korea International Economic Association.
Keywords
- Transition economies
- dynamic panel system GMM
- financial development
- remittance
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
