Remittances and Economic Growth: Empirical Analysis from a Panel of Selected Asian Nations

IF 1.3 Q1 AREA STUDIES

Millennial Asia Pub Date : 2022-05-22 DOI:10.1177/09763996221086745

Ujjal Protim Dutta, Brajendra Saikia

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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.

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汇款与经济增长:来自亚洲国家的实证分析

本文旨在探讨汇款对经济增长的影响，方法是从1993年至2017年，选取17个亚洲汇款接收国作为研究对象。最初，研究使用面板单位根检验来确定变量是否平稳。随后，通过协整检验，变量之间存在长期关联。为了找到一种长期的关系，“完全修正的普通最小二乘”方法被应用于检验汇款和其他解释变量对亚洲国家人均产出的影响。汇款系数为正且具有统计学意义意味着汇款促进了这些国家的增长。流入亚洲区域的汇款很多，考虑到目前的移徙趋势，可能还会增加。为了最大限度地发挥这些资金流入对发展的影响，在正式的公共和私人基础设施中发展有利于汇款的设施是该地区各国政府的一项重要政策目标。此外，除了人力和物质资本投资、贸易和外国直接投资(FDI)等传统的增长决定因素外，亚洲国家还可以通过调动汇款来促进增长。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Millennial Asia AREA STUDIES-

CiteScore

4.50

自引率

12.50%

发文量

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.