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Do remittances to emerging countries improve their economic development? Understanding the contingent role of culture

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  • Piteli, Eleni E.N.
  • Buckley, Peter J.
  • Kafouros, Mario

Abstract

We contribute to extant research that has largely focused on foreign direct investment by examining how an under-studied type of financial inflow (remittances) influences the economic development of recipient Emerging Market Countries (EMCs). We do so by explaining how variations in the cultural context of recipient EMCs influence the value-generating effects of remittances. Our study helps us understand why certain nations can use remittances to improve their economic development (whereas others fail to do so) and the role that cultural contingencies play in determining such outcomes. The empirical analysis of 28 EMCs reveals an interesting pattern, showing that masculinity and power distance increase the economic effects of remittances, whereas uncertainty avoidance and individualism decrease such effects.

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  • Piteli, Eleni E.N. & Buckley, Peter J. & Kafouros, Mario, 2019. "Do remittances to emerging countries improve their economic development? Understanding the contingent role of culture," Journal of International Management, Elsevier, vol. 25(4).
    • Handle: RePEc:eee:intman:v:25:y:2019:i:4:s1075425317304684
    DOI: 10.1016/j.intman.2019.05.002
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    6. Gnangnon, Sèna Kimm, 2022. "Duration of WTO Membership and Investment-Oriented Remittances Flows," EconStor Preprints 251274, ZBW - Leibniz Information Centre for Economics.
    7. Ivan Montiel & Alvaro Cuervo-Cazurra & Junghoon Park & Raquel Antolín-López & Bryan W. Husted, 2021. "Implementing the United Nations’ Sustainable Development Goals in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(5), pages 999-1030, July.
    8. P. Jijin & Alok Kumar Mishra & M. Nithin, 2022. "Macroeconomic determinants of remittances to India," Economic Change and Restructuring, Springer, vol. 55(2), pages 1229-1248, May.
    9. Abbasi, Kaleemullah & Alam, Ashraful & Du, Min (Anna) & Huynh, Toan Luu Duc, 2021. "FinTech, SME efficiency and national culture: Evidence from OECD countries," Technological Forecasting and Social Change, Elsevier, vol. 163(C).

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