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Development aid, remittances inflows and wages in the manufacturing sector

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  • Sèna Kimm Gnangnon

    (World Trade Organization)

Abstract

This article has considered the effect of development aid and remittances inflows on wages in the manufacturing sector of recipient economies. The empirical analysis has used a sample of 95 countries over the period 1969–2016 and relied on the two-step system generalized methods of moments. Results show for the full sample that while remittances influence positively wages (notably in remittances-dependent countries), development aid exerts a negative effect on wages. Additionally, the effects of development aid and remittances on wages depend on the prevailing real exchange rate as well as on the values of manufacturing exports.

Suggested Citation

  • Sèna Kimm Gnangnon, 2020. "Development aid, remittances inflows and wages in the manufacturing sector," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 22(2), pages 278-304, December.
  • Handle: RePEc:spr:jsecdv:v:22:y:2020:i:2:d:10.1007_s40847-020-00110-4
    DOI: 10.1007/s40847-020-00110-4
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