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Remittance and Macroeconomic Performance in Top Migrating Countries

Author

Listed:
  • Olajide O. Oyadeyi

    (Imperial College Business School, London SW7 2AZ, UK)

  • Idris A. Adediran

    (Centre for Econometrics and Applied Research, University of Ibadan, Ibadan 200285, Nigeria
    Department of Economics, Fountain University, Osogbo 230284, Nigeria)

  • Balikis A. Kabir

    (Centre for Econometrics and Applied Research, University of Ibadan, Ibadan 200285, Nigeria)

Abstract

Globalization opens up economies and encourages the free movement of persons and factors of production. Diaspora investors and workers earn income in the process and make remittances to the migrating countries. We examine the impact of the remittance inflow on the macroeconomic performance of top emigrating countries, which comprise nine emerging and two advanced economies. We conduct group and individual country analyses with distinct econometric models (Feasible Quasi Generalized Least Squares and Dynamic Common Correlated Effects) using data between 1987 and 2021. The results reveal positive impact of remittance inflows on nominal GDP and nominal GDP per capita and on real GDP and real GDP per capita, although evidence on the latter is weaker. In all, the emigrating countries can benefit from diaspora remittance in terms of improved productivity and macroeconomic performance. We therefore recommend better systems to facilitate remittance receipt and policies to channel such flows more into investment activities.

Suggested Citation

  • Olajide O. Oyadeyi & Idris A. Adediran & Balikis A. Kabir, 2024. "Remittance and Macroeconomic Performance in Top Migrating Countries," Social Sciences, MDPI, vol. 13(5), pages 1-23, April.
    • Handle: RePEc:gam:jscscx:v:13:y:2024:i:5:p:239-:d:1383613
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    References listed on IDEAS

    as
    1. K. P. Kannan & K. S. Hari, 2020. "Revisiting Kerala’s Gulf Connection: Half a Century of Emigration, Remittances and Their Macroeconomic Impact, 1972–2020," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(4), pages 941-967, December.
    2. Robert Stojanov & Daniel Němec & Libor Žídek, 2019. "Evaluation of the Long-Term Stability and Impact of Remittances and Development Aid on Sustainable Economic Growth in Developing Countries," Sustainability, MDPI, vol. 11(6), pages 1-18, March.
    3. Kanchan Datta & Bimal Sarkar, 2014. "Relationship between Remittances and Economic Growth in Bangladesh: An Econometric Study," Bangladesh Development Research Working Paper Series (BDRWPS) BDRWPS No. 19, Bangladesh Development Research Center (BDRC).
    4. Olajide Oyadeyi, 2023. "Financial development, interest rate pass-through and interest rate channel of monetary policy," Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(1), pages 2209952-220, December.
    5. Oyadeyi, Olajide & Akinbobola, Temidayo, 2022. "Financial Development and the Current Account in Nigeria," MPRA Paper 118001, University Library of Munich, Germany.
    6. Koji Kubo, 2017. "Evolving informal remittance methods among Myanmar migrant workers in Thailand," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 22(3), pages 396-413, July.
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