IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-19-00759.html
   My bibliography  Save this article

Revisiting Institutional Determinants of Remittances: Evidence from a Large Panel of Countries

Author

Listed:
  • Sunny Kumar Singh

    (Birla Institute of Technology and Science, Pilani, Hyderabad Campus)

Abstract

This paper attempts to examine the impact of various aspects of institutional quality on the remittances inflows for a sample of 114 countries (69 developing countries and 45 developed countries) over the period 1984-2016. We find that an improvement in the index of government stability, investment profile, internal conflict, and democratic accountability significantly increase the remittances inflows, whereas a decline in socio-economic condition and a corrupt political environment increase the remittances inflows. The results are robust to the inclusion of a variety of macroeconomic controls and country fixed effects. We find qualitatively similar results with a subsample of developing countries.

Suggested Citation

  • Sunny Kumar Singh, 2019. "Revisiting Institutional Determinants of Remittances: Evidence from a Large Panel of Countries," Economics Bulletin, AccessEcon, vol. 39(4), pages 2247-2257.
    • Handle: RePEc:ebl:ecbull:eb-19-00759
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I4-P211.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Emmanuel K.K. Lartey & Evelina Mengova, 2016. "Does institutional quality in developing countries affect remittances?," Journal of Developing Areas, Tennessee State University, College of Business, vol. 50(1), pages 59-76, January-M.
    2. Adams, Richard Jr. & Page, John, 2005. "Do international migration and remittances reduce poverty in developing countries?," World Development, Elsevier, vol. 33(10), pages 1645-1669, October.
    3. El-Sakka, M. I. T. & McNabb, Robert, 1999. "The Macroeconomic Determinants of Emigrant Remittances," World Development, Elsevier, vol. 27(8), pages 1493-1502, August.
    4. Berdiev, Aziz N. & Kim, Yoonbai & Chang, Chun-Ping, 2013. "Remittances and corruption," Economics Letters, Elsevier, vol. 118(1), pages 182-185.
    5. Ibrahim Sirkeci & Jeffrey H. Cohen & Dilip Ratha, 2012. "Migration and Remittances during the Global Financial Crisis and Beyond," World Bank Publications - Books, The World Bank Group, number 13092.
    6. Catrinescu, Natalia & Leon-Ledesma, Miguel & Piracha, Matloob & Quillin, Bryce, 2009. "Remittances, Institutions, and Economic Growth," World Development, Elsevier, vol. 37(1), pages 81-92, January.
    7. K. Bello Ajide & Ibrahim Dolapo Raheem, 2016. "The Institutional Quality Impact on Remittances in the ECOWAS Sub†Region," African Development Review, African Development Bank, vol. 28(4), pages 462-481, December.
    8. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    9. Thanh Le, 2009. "Trade, Remittances, Institutions, and Economic Growth," International Economic Journal, Taylor & Francis Journals, vol. 23(3), pages 391-408.
    10. Chinn, Menzie D. & Ito, Hiro, 2006. "What matters for financial development? Capital controls, institutions, and interactions," Journal of Development Economics, Elsevier, vol. 81(1), pages 163-192, October.
    11. Raju Jan Singh & Markus Haacker & Kyung-woo Lee & Maëlan Le Goff, 2011. "Determinants and Macroeconomic Impact of Remittances in Sub-Saharan Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 20(2), pages 312-340, March.
    12. Agarwal, Reena & Horowitz, Andrew W., 2002. "Are International Remittances Altruism or Insurance? Evidence from Guyana Using Multiple-Migrant Households," World Development, Elsevier, vol. 30(11), pages 2033-2044, November.
    13. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Angana Parashar SARMA & Muniyor KRISHNA, 2024. "Causal Nexus Between Remittance Inflow And Its Determinants, 1998-2020: Evidence From The South And Southeast Asian Lmics," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 24(1), pages 97-120.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ekpeno L. Effiong & Emmanuel E. Asuquo, 2017. "Migrants' Remittances, Governance and Heterogeneity," International Economic Journal, Taylor & Francis Journals, vol. 31(4), pages 535-554, October.
    2. Kim, Jounghyeon, 2023. "Does population aging matter for remittances in developing countries?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1038-1056.
    3. Chrysost Bangake & Jude Eggoh, 2020. "Financial Development Thresholds and the Remittances-Growth Nexus," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 18(2), pages 425-445, June.
    4. Dorsaf Sridi & Wafa Ghardallou, 2021. "Remittances and disaggregated country risk ratings in Tunisia: an ARDL approach," Middle East Development Journal, Taylor & Francis Journals, vol. 13(1), pages 191-211, January.
    5. Ziesemer, Thomas H.W., 2012. "Worker remittances, migration, accumulation and growth in poor developing countries: Survey and analysis of direct and indirect effects," Economic Modelling, Elsevier, vol. 29(2), pages 103-118.
    6. Özşahin, Şerife & Üçler, Gülbahar, 2017. "Asymmetric Relationship between Institutional Quality and Remittance Inflows: Empirical Evidence for Turkey," Bulletin of Economic Theory and Analysis, BETA Journals, vol. 2(3), pages 189-204, July-Sept.
    7. Uweis Abdulahi Ali Bare & Yasmin Bani & Normaz Wana Ismail & Anitha Rosland, 2021. "Remittances And Health Outcomes In Sub-Saharan African Countries: Understanding The Role Of Financial Development And Institutional Quality," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 66(229), pages 119-144, April – J.
    8. repec:dgr:unumer:2008063 is not listed on IDEAS
    9. Kim, Jounghyeon, 2021. "Financial development and remittances: The role of institutional quality in developing countries," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 386-407.
    10. Sèna Kimm Gnangnon, 2020. "Trade Openness and Diversification of External Financial Flows for Development: An Empirical Analysis," South Asian Journal of Macroeconomics and Public Finance, , vol. 9(1), pages 22-57, June.
    11. Junaid Ahmed & Mazhar Mughal & Inmaculada Martínez‐Zarzoso, 2021. "Sending money home: Transaction cost and remittances to developing countries," The World Economy, Wiley Blackwell, vol. 44(8), pages 2433-2459, August.
    12. Adams, Samuel & Klobodu, Edem Kwame Mensah, 2016. "Remittances, regime durability and economic growth in Sub-Saharan Africa (SSA)," Economic Analysis and Policy, Elsevier, vol. 50(C), pages 1-8.
    13. Sena Kimm Gnangnon, 2019. "Remittances Inflows and Trade Policy," Remittances Review, Remittances Review, vol. 4(2), pages 117-142, October.
    14. Williams, Kevin, 2024. "Remittances and government expenditures on human capital in developing countries," International Economics, Elsevier, vol. 178(C).
    15. Blaise Gnimassoun & John C. Anyanwu, 2019. "The Diaspora and economic development in Africa," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(4), pages 785-817, November.
    16. Combes, Jean-Louis & Kinda, Tidiane & Ouedraogo, Rasmané & Plane, Patrick, 2019. "Financial flows and economic growth in developing countries," Economic Modelling, Elsevier, vol. 83(C), pages 195-209.
    17. Kevin Williams, 2017. "Does democracy dampen the effect of finance on economic growth?," Empirical Economics, Springer, vol. 52(2), pages 635-658, March.
    18. Cha'ngom, Narcisse & Tamokwe Piaptie, Georges Bertrand, 2018. "Les transferts de fonds des migrants contribuent elles à l'inclusivité de la croissance en Afrique Subsaharienne? [Do remittances contribute to inclusive growth in Subsaharan Africa?]," MPRA Paper 91321, University Library of Munich, Germany.
    19. Alessio Ciarlone, 2023. "Remittances in times of crisis: evidence from Italian corridors," Temi di discussione (Economic working papers) 1402, Bank of Italy, Economic Research and International Relations Area.
    20. Imen Mohamed Sghaier, 2022. "Foreign Capital Inflows and Economic Growth in North African Countries: the Role of Human Capital," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2804-2821, December.
    21. Arusha Cooray & Nabamita Dutta & Sushanta Mallick, 2016. "Does female human capital formation matter for the income effect of remittances? Evidence from developing countries," Oxford Development Studies, Taylor & Francis Journals, vol. 44(4), pages 458-478, October.

    More about this item

    Keywords

    Remittances; Institutional Quality; ICRG; System GMM;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

    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:ebl:ecbull:eb-19-00759. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: John P. Conley (email available below). General contact details of provider: .

    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.