Remittances, growth and poverty: New evidence from Asian countries

Authors Organisations
  • Katsushi S. Imai(Author)
    The University of Manchester
  • Raghav Gaiha(Author)
    Harvard School of Public Health
  • Abdilahi Ali(Author)
  • Nidhi Kaicker(Author)
Type Article
Original languageEnglish
Pages (from-to)524-538
Number of pages24
JournalJournal of Policy Modeling
Volume36
Issue number3
Early online date01 Feb 2014
DOI
Publication statusPublished - 01 May 2014
Links
Show download statistics
View graph of relations
Citation formats

Abstract

The present study re-examines the effects of remittances on growth of GDP per capita using annual panel data for 24 Asia and Pacific countries. The results generally confirm that remittance flows have been beneficial to economic growth. However, our analysis also shows that the volatility of capital inflows such as remittances and FDI is harmful to economic growth. This means that, while remittances contribute to better economic performance, they are also a source of output shocks. Finally, remittances contribute to poverty reduction – especially through their direct effects. Migration and remittances are thus potentially a valuable complement to broad-based development efforts.

Keywords

  • remittances, economic growth, volatility, poverty, Asia