Financial Development Thresholds and the Remittances-Growth Nexus

Bangake, Chrysost; Eggoh, Jude

Document type :

Article dans une revue scientifique

DOI :

10.1007/s40953-019-00188-6

Title :

Financial Development Thresholds and the Remittances-Growth Nexus

Author(s) :

Bangake, Chrysost [Auteur]
Laboratoire d'économie d'Orleans [2008-2011] [LEO]
Lille économie management - UMR 9221 [LEM]
Eggoh, Jude [Auteur]
Laboratoire d'économie d'Orleans [2008-2011] [LEO]

Journal title :

Journal of Quantitative Economics

Publisher :

The Indian Econometric Society

Publication date :

2019-10-30

ISSN :

0971-1554

HAL domain(s) :

Sciences de l'Homme et Société
Sciences de l'Homme et Société/Economies et finances

English abstract : [en]

This study provides new evidence on the relationship between remittances and economic growth using system GMM on dynamic panel and panel threshold regression (PTR) model proposed by Hansen (J Econ 93:334–368, 1999) that ...
Show more >This study provides new evidence on the relationship between remittances and economic growth using system GMM on dynamic panel and panel threshold regression (PTR) model proposed by Hansen (J Econ 93:334–368, 1999) that authorized multiple thresholds. The sample consists of 60 developing countries from 1985 to 2015. The empirical results indicate that there is a threshold effects of financial development in the remittances-growth relationship. Beyond a given threshold of financial development, there is a positive relationship between remittances and economic growth, while, this relationship is insignificant under the threshold. Specifically, remittances will be more likely to contribute to economic in recipient countries with relatively well-functioning financial sectors. Since financial development seems to matter in the manner in which remittances are used, the best way for recipient country governments to ensure that remittances contribute to positive economic growth is to foster financial sectors, thus ensuring that a greater proportion of remittances are channeled in a more effective way to have a positive impact on growth.Show less >

Language :

Anglais

Peer reviewed article :

Oui

Audience :

Internationale

Popular science :

Non

Collections :

Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL

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