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Revisiting the linkage between remittances inflow and economic growth: A semi-parametric estimation with panel data

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  • Farroukh, Arafet
  • Mazioued, Manel
  • Pédussel Wu, Jennifer

Abstract

We investigate the relationship between remittances inflow and economic growth in a sample of 65 emerging countries over the period 1988-2018 using the semi-parametric panel data model with fixed effects as proposed by Baltagi and Li (2002). Our empirical results show that the effect of remittances inflow on economic growth exhibits a highly nonlinear pattern, which sheds new light on the remittances-growth nexus and provides evidence of a nonlinear relationship.

Suggested Citation

  • Farroukh, Arafet & Mazioued, Manel & Pédussel Wu, Jennifer, 2024. "Revisiting the linkage between remittances inflow and economic growth: A semi-parametric estimation with panel data," IPE Working Papers 238/2024, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    • Handle: RePEc:zbw:ipewps:301859
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    More about this item

    Keywords

    Remittances; Growth; Nonlinear effects; Semi-parametric regression; Panel data; Emerging countries;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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