IDEAS home Printed from https://ideas.repec.org/a/ers/ijebaa/vviiiy2020i1p254-262.html
   My bibliography  Save this article

Econometric Approach of the Nexus Between Remittances and Economic Growth in Western Balkans

Author

Listed:
  • Rrezarta Gashi
  • Liza Alili Sylejmani

Abstract

Purpose: The purpose of this research paper is to highlight the importance of remittances in the economic development of a country, with special emphasis in Western Balkan countries. Design/Methodology/Approach: This paper is based on the study of theoretical issues, OLS model, fixed (FE) and random (RE) effect model. In addition Hausman test has been applied to determine the appropriate model among Fixed and Random effects. Revealing the results of the Hausman test the Random effect model is considered as the appropriate model, and it implies the existence of positive and significant relationship between remittances and GDP per capita growth in the Western Balkan countries for the time period 2000 - 2018. Findings: Results based in OLS model findings reveal a positive relationship between remittances and GDP per capita growth. Also the results of the random and fixed effect model reveal positive and significant effect of remittances on the economic growth, thus by increasing remittances the GDP per capita will increase. The results also present that Gross Fixed Capital Formation has a positive impact on the economic growth, where by increasing Gross Fixed Capital Formation, the GDP per capita will increase. Practical Implications: The results of this research are supportive regarding the relationship between remittances and economic growth, yet will contribute to the existing literature as well as for further policy recommendations by the Western Balkan countries. Originality/Value: This research paper is an empirical analysis based on the data provided by the World Bank, for the time period 2000-2018.

Suggested Citation

  • Rrezarta Gashi & Liza Alili Sylejmani, 2020. "Econometric Approach of the Nexus Between Remittances and Economic Growth in Western Balkans," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 254-262.
    • Handle: RePEc:ers:ijebaa:v:viii:y:2020:i:1:p:254-262
    as

    Download full text from publisher

    File URL: https://www.ijeba.com/journal/561/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nathalie Girouard & Christophe André, 2005. "Measuring Cyclically-adjusted Budget Balances for OECD Countries," OECD Economics Department Working Papers 434, OECD Publishing.
    2. Eva Van Leemput & Ellen A. Wiencek, 2017. "The Effect of the GST on Indian Growth," IFDP Notes 2017-03-24, Board of Governors of the Federal Reserve System (U.S.).
    3. Paolo Dudine & Joao Tovar Jalles, 2018. "How Buoyant Is the Tax System? New Evidence from a Large Heterogeneous Panel," Journal of International Development, John Wiley & Sons, Ltd., vol. 30(6), pages 961-991, August.
    4. Emran, M. Shahe & Stiglitz, Joseph E., 2005. "On selective indirect tax reform in developing countries," Journal of Public Economics, Elsevier, vol. 89(4), pages 599-623, April.
    5. Laurence Seidman, 2013. "Overcoming the Fiscal Trilemma with Two Progressive Consumption Tax Supplements," Public Finance Review, , vol. 41(6), pages 824-851, November.
    Full references (including those not matched with items on IDEAS)

    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. Udai Lal Paliwal & Nitin Kishore Saxena & Ashutosh Pandey, 2019. "Analysing the Impact of GST on Tax Revenue in India: The Tax Buoyancy Approach," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 514-523.
    2. Bernd Hayo & Sascha Mierzwa & Umut Unal, 2021. "Estimating Policy-Corrected Long-Term and Short-Term Tax Elasticities for the United States, Germany, and the United Kingdom," MAGKS Papers on Economics 202112, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    3. Fotini Economou & Ioanna Kountouri & Yannis Panagopoulos & Georgia Skintzi & Ekaterini Tsouma, 2022. "Estimating excise tax revenue elasticity and buoyancy for tobacco products and alcoholic beverages: evidence from Greece," Applied Economics, Taylor & Francis Journals, vol. 54(39), pages 4557-4576, August.
    4. Bernd Hayo & Sascha Mierzwa & Umut Ünal, 2023. "Estimating policy-corrected long-term and short-term tax elasticities for the USA, Germany, and the United Kingdom," Empirical Economics, Springer, vol. 64(1), pages 465-504, January.
    5. Francis Kwaw Andoh & Nehemiah E. Osoro & Eliab Luvanda, 2019. "Growth Dynamics of Value-Added Tax Revenue in Ghana," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 13(2), June.
    6. Douglas Sutherland & Peter Hoeller & Balázs Égert & Oliver Röhn, 2010. "Counter-cyclical Economic Policy," OECD Economics Department Working Papers 760, OECD Publishing.
    7. Stefan Schiman-Vukan, 2013. "Langfristige Perspektiven der öffentlichen Finanzen in Österreich. Projektionen des Staatshaushalts bis 2050," WIFO Studies, WIFO, number 46670, April.
    8. Boysen-Hogrefe, Jens, 2012. "Zu den Budgetzielen in den Anpassungsprogrammen für Griechenland," Kiel Insight 2012.13, Kiel Institute for the World Economy (IfW Kiel).
    9. Canavire-Bacarreza, Gustavo & Martínez-Vázquez, Jorge & Vulovic, Violeta, 2013. "Taxation and Economic Growth in Latin America," IDB Publications (Working Papers) 4583, Inter-American Development Bank.
    10. Paul E. Carrillo & M. Shahe Emran & Anita Rivadeneira, 2011. "Do Cheaters Bunch Together? Profit Taxes, Withholding Rates and Tax Evasion," Working Papers 2011-03, The George Washington University, Institute for International Economic Policy.
    11. Achim Truger, 2015. "Implementing the golden rule for public investment in Europe," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 138, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    12. Alexander Knobel & Sergey Sinelnikov-Murylev & Ilya Sokolov, 2013. "Quality of the Administration of Value-Added Tax in OECD countries and Russia," Working Papers 0050, Gaidar Institute for Economic Policy, revised 2013.
    13. Steven A. Symansky & Thomas Baunsgaard, 2009. "Automatic Fiscal Stabilizers," IMF Staff Position Notes 2009/23, International Monetary Fund.
    14. Łukasz Rawdanowicz, 2014. "Choosing the pace of fiscal consolidation," OECD Journal: Economic Studies, OECD Publishing, vol. 2013(1), pages 91-119.
    15. Combey, Adama, 2020. "Evaluation De L’Ecart De Tva Au Togo [Evaluation Of The Vat Gap In Togo]," MPRA Paper 101478, University Library of Munich, Germany.
    16. Troy Davig & Michael Redmond, 2014. "Accounting for changes in the U.S. budget deficit," Macro Bulletin, Federal Reserve Bank of Kansas City, pages 1-2, December.
    17. Boysen-Hogrefe, Jens, 2014. "Konjunkturbereinigung der Länder: Eine Quasi-Echtzeitanalyse am Beispiel Schleswig-Holsteins," Kiel Discussion Papers 538, Kiel Institute for the World Economy (IfW Kiel).
    18. Tapsoba, René, 2012. "Do National Numerical Fiscal Rules really shape fiscal behaviours in developing countries? A treatment effect evaluation," Economic Modelling, Elsevier, vol. 29(4), pages 1356-1369.
    19. Amable, Bruno & Azizi, Karim, 2014. "Counter-cyclical budget policy across varieties of capitalism," Structural Change and Economic Dynamics, Elsevier, vol. 30(C), pages 1-9.
    20. Amable, Bruno & Azizi, Karim, 2011. "Varieties of capitalism and varieties of macroeconomic policy. Are some economies more procyclical than others?," MPIfG Discussion Paper 11/6, Max Planck Institute for the Study of Societies.

    More about this item

    Keywords

    Remittances; growth; Fixed effect; Random effect; Western Balkans.;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F29 - International Economics - - International Factor Movements and International Business - - - Other

    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:ers:ijebaa:v:viii:y:2020:i:1:p:254-262. 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: Marios Agiomavritis (email available below). General contact details of provider: https://ijeba.com/ .

    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.