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Remittances and economic growth: what channels of transmission? (In French)

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  • Sami Ben Mim
  • Fatma Mabrouk

Abstract

This article examines the effect of remittances on economic growth, highlighting the main transmission channels. Using the SGMM method, estimates based on data from 27 developing countries show that remittances have a positive and significant effect on economic growth. The results don’t allow drawing any definitive conclusion concerning the investment channel, but confirm that the remittances speed up the accumulation of human capital, and thereby stimulate growth. The human capital channel has also an indirect effect on growth through investment.

Suggested Citation

  • Sami Ben Mim & Fatma Mabrouk, 2011. "Remittances and economic growth: what channels of transmission? (In French)," Cahiers du GREThA (2007-2019) 2011-28, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    • Handle: RePEc:grt:wpegrt:2011-28
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    File URL: http://cahiersdugretha.u-bordeaux.fr/2011/2011-28.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Migration; remittances; economic growth; investment; panel data;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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