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Macroeconomic Determinants of International Remittances: Evidence from Time-Series and Panel Methods

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  • Artatrana Ratha and Eungmin Kang

    (St. Cloud State University, Minnesota, USA)

Abstract

TAt more than three times official development aid flows, remittances are now recognized as a key source of scarce foreign exchange for the developing world. Most papers looking into the macroeconomic determinants of remittance inflows tend to be panel, cross-sectional, or qualitative country-specific studies, understandably due a lack of consistent time-series data. We estimate an econometric model using the bounds-testing approach to cointegration and error-correction modeling (Pesaran et al., 2001) on time-series data as well as by employing traditional panel methods on the same data set. It appears that the generalized evidence based on panel or cross-sectional studies may not apply to individual countries.

Suggested Citation

  • Artatrana Ratha and Eungmin Kang, 2020. "Macroeconomic Determinants of International Remittances: Evidence from Time-Series and Panel Methods," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 45(3), pages 51-76, September.
    • Handle: RePEc:jed:journl:v:45:y:2020:i:3:p:51-76
    DOI: 10.35866/caujed.2020.45.3.003
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    Cited by:

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    More about this item

    Keywords

    Remittances; Migration; Development; Bounds-Testing; Altruism; Self Interest;
    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
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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