TY - JOUR
T1 - Personal Remittances and Financial Development for Economic Growth in Economic Transition Countries
AU - Cao, Shijun
AU - Kang, Sung Jin
N1 - 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.
PY - 2020/7/2
Y1 - 2020/7/2
N2 - 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.
AB - 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.
KW - Transition economies
KW - dynamic panel system GMM
KW - financial development
KW - remittance
UR - http://www.scopus.com/inward/record.url?scp=85085688508&partnerID=8YFLogxK
U2 - 10.1080/10168737.2020.1765187
DO - 10.1080/10168737.2020.1765187
M3 - Article
AN - SCOPUS:85085688508
SN - 1016-8737
VL - 34
SP - 472
EP - 492
JO - International Economic Journal
JF - International Economic Journal
IS - 3
ER -
