{"title":"Remittances and Economic Growth: Empirical Analysis from a Panel of Selected Asian Nations","authors":"Ujjal Protim Dutta, Brajendra Saikia","doi":"10.1177/09763996221086745","DOIUrl":null,"url":null,"abstract":"This article’s endeavour is to explore the consequences of remittances on the growth of an economy by employing a panel of 17 selected remittance-receiving Asian nations over the years, stretching from 1993 to 2017. Initially, the study used the panel unit root test to identify whether the variables are stationary or not. Subsequently, by using cointegration test, a long-run association among the variables was seen. Finding a long-run relationship, ‘fully modified ordinary least square’ method has been applied to examine the impact of remittances and other explanatory variables on the output per capita of Asian nations. The coefficient of remittances being positive and statistically significant implies that remittances enhance growth in these countries. Inflows of remittances to the Asian region are abundant and, considering the present trend of migration, it is likely to grow. To maximize the developmental effects of these inflows, developing pro-remittances in formal public and private infrastructure are a crucial policy target for governments in the region. Moreover, in addition to conventional determinants of growth like investment in human and physical capital, trade and foreign direct investment (FDI), Asian countries can increase their growth by mobilizing the remittances.","PeriodicalId":41791,"journal":{"name":"Millennial Asia","volume":null,"pages":null},"PeriodicalIF":1.3000,"publicationDate":"2022-05-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Millennial Asia","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1177/09763996221086745","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"AREA STUDIES","Score":null,"Total":0}
引用次数: 2
Abstract
This article’s endeavour is to explore the consequences of remittances on the growth of an economy by employing a panel of 17 selected remittance-receiving Asian nations over the years, stretching from 1993 to 2017. Initially, the study used the panel unit root test to identify whether the variables are stationary or not. Subsequently, by using cointegration test, a long-run association among the variables was seen. Finding a long-run relationship, ‘fully modified ordinary least square’ method has been applied to examine the impact of remittances and other explanatory variables on the output per capita of Asian nations. The coefficient of remittances being positive and statistically significant implies that remittances enhance growth in these countries. Inflows of remittances to the Asian region are abundant and, considering the present trend of migration, it is likely to grow. To maximize the developmental effects of these inflows, developing pro-remittances in formal public and private infrastructure are a crucial policy target for governments in the region. Moreover, in addition to conventional determinants of growth like investment in human and physical capital, trade and foreign direct investment (FDI), Asian countries can increase their growth by mobilizing the remittances.
期刊介绍:
Millennial Asia: An International Journal of Asian Studies is a multidisciplinary, refereed biannual journal of the Association of Asia Scholars (AAS)–an association of the alumni of the Asian Scholarship Foundation (ASF). It aims to encourage multifaceted, multidisciplinary and interdisciplinary research on Asia, in order to understand its fast changing context as a growth pole of global economy. By providing a forum for Asian scholars situated globally, it promotes dialogue between the global academic community, civil society and policy makers on Asian issues. The journal examines Asia on a regional and comparative basis, emphasizing patterns and tendencies that go beyond national borders and are globally relevant. Modern and contemporary Asia has witnessed dynamic transformations in cultures, societies, economies and political institutions, among others. It confronts issues of collective identity formation, ecological crisis, rapid economic change and resurgence of religion and communal identifies while embracing globalization. An analysis of past experiences can help produce a deeper understanding of contemporary change. In particular, the journal is interested in locating contemporary changes within a historical perspective, through the use of interdisciplinary and multidisciplinary approaches. This way, it hopes to promote comparative studies involving Asia’s various regions. The journal brings out both thematic and general issues and the thrust areas are: Asian integration, Asian economies, sociology, culture, politics, governance, security, development issues, arts and literature and any other such issue as the editorial board may deem fit. The core fields include development encompassing agriculture, industry, regional trade, social sectors like health and education and development policy across the region and in specific countries in a comparative perspective.