IDEAS home Printed from https://ideas.repec.org/a/bla/econpa/v38y2019i4p311-328.html
   My bibliography  Save this article

Impacts of FDI and Remittance Inflows in Developing Asia: A Comparative Dynamic Panel Study

Author

Listed:
  • Madhabendra Sinha
  • Darius Tirtosuharto
  • Partha Pratim Sengupta

Abstract

The paper explores the macroeconomic impacts of foreign direct investment (FDI) and remittance inflows in developing Asia. Asian developing economies are identified as the highest receiver of remittances and the region has also been consistently performing well in receiving of FDI inflows. As an external source of capital formation, inflows of FDI and remittances affect foreign exchange rates and output. This study provides empirical evidence on the impact of FDI and remittances on real effective exchange rates and GDP in Asian developing countries using data over the period of 1981‐2015. Dynamic panel GMM technique is employed to overcome the endogeneity issue. Findings imply that both inflows of FDI and remittances have positive and significant impacts on exchange rates and GDP in developing Asia. Hence, remittances carry greater influence and significant impacts due to relatively stable inflows.

Suggested Citation

  • Madhabendra Sinha & Darius Tirtosuharto & Partha Pratim Sengupta, 2019. "Impacts of FDI and Remittance Inflows in Developing Asia: A Comparative Dynamic Panel Study," Economic Papers, The Economic Society of Australia, vol. 38(4), pages 311-328, December.
    • Handle: RePEc:bla:econpa:v:38:y:2019:i:4:p:311-328
    DOI: 10.1111/1759-3441.12260
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1759-3441.12260
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1759-3441.12260?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hemachandra Padhan & Deepak Kumar Behera & Santosh Kumar Sahu & Umakant Dash, 2023. "Does Corruption Hinderance Economic Growth Despite Surge of Remittance and Capital Inflows Since Economic Liberalization in an Emerging Economy, India," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 426-449, March.
    2. Muntasir Murshed & Seemran Rashid, 2020. "An Empirical Investigation of Real Exchange Rate Responses to Foreign Currency Inflows: Revisiting the Dutch Disease Phenomenon in South Asia," The Economics and Finance Letters, Conscientia Beam, vol. 7(1), pages 23-46.
    3. Ferry Syarifuddin & Maman Setiawan, 2021. "Capital Flow Amid The Covid-19 Pandemic: Cross-Country Contagion Effect Among Asean5 And Projection Of The Impacts For The Indonesian Economy," Working Papers WP/08/2021, Bank Indonesia.
    4. Anthanasius G. Paul, 2021. "The effects of industrial production, inflow remittances, and FDI on the rate of Inflation in Liberia 2000-2020," International Journal of Science and Business, IJSAB International, vol. 5(9), pages 181-191.
    5. Md. Ahasan Ul Haque & Md. Golam Kibria & Md. Muhaiminul Islam Selim, 2021. "Effects of Foreign Aid and Remittances Flows on Saving and Investment in Developing South Asia: Panel Data Study," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 7(2), pages 21-27, 06-2021.
    6. Peter Nderitu GITHAIGA, 2019. "Foreign Remittances, Private Sector Investment and Banking Sector Development," Journal of Economics and Financial Analysis, Tripal Publishing House, vol. 3(2), pages 85-112.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:econpa:v:38:y:2019:i:4:p:311-328. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.