Contents of the volume

2019, Volume 72 - Issue 1

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 01 February 2019

STUDY ON THE CAUSALITY NEXUS BETWEEN MACRO-ECONOMIC VARIABLES USING VECTOR ERROR CORRECTION MODELING

Shailender Singh, Hawati Janor

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REMITTANCES AND FOREIGN AIDS: SUBSTITUTES OR COMPLEMENTS IN THE ECONOMICS GROWTH OF DEVELOPING COUNTRIES?

Temitope Laniran, Victoria A. Olakunle

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FOREIGN DIRECT INVESTMENTS, EXPORTS AND ECONOMIC GROWTH IN SIDS: EVIDENCE FROM SANTA LUCIA

Roger Hosein, Regan Deonanan, Kimbert Evans

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TIME SERIES ANALYSIS USING ARIMA MODELS: AN APPROACH TO FORECASTING HEALTH EXPENDITURES IN USA

Nicholaos Dritsakis, Paraskevi Klazoglou

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THE DEMAND FOR PUBLIC AND PRIVATE MEDICAL CARE SERVICES: EVIDENCE FROM KUWAIT

Nadeem A. Burney, Nadia Al-Musallam, Mohammad Alenezi, Salwa Hamada

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Temitope LANIRAN, Bradford Centre for International Development, University of Bradford, United Kingdom and Centre for Petroleum, Energy Economics and Law, University of Ibadan, Nigeria

Co-authors

Victoria A. OLAKUNLE, School of Economics, The University of Nottingham, UK

Remittances and Foreign Aids: Substitutes or Complements in the Economics Growth of Developing Countries?

Pages

23-46

Abstract

Existing literature posits that there is an association between foreign aid and growth; however, the robustness of this relationship is often questioned. A similar lack of consensus exists on the relationship between remittances and growth. Given the significant outlays of foreign aid and remittances to developing countries, this study is motivated by the objective of investigating which of these transfers has the greater impact on growth. Employing panel data of 77 developing countries over the 1995-2011 periods using Systems GMM, the results suggest a substitutable relationship and not complementary between aid and remittances implying that the presence of remittance reduces the amount of aid allocated to a country and also its relative growth-impact.

JEL classification

F24, F35, O41

Keywords

Foreign Aid, Remittances, Economic Growth

Index

  1. Introduction
  2. Literature review
  3. Data and model estimation
  4. Estimation results
  5. Conclusion

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