Publication: The Impact of Remittances on Growth Evidence from North African Countries
Date
2009-09-30
ISSN
Published
2009-09-30
Author(s)
Abstract
Remittances constitute financial flows
that affect the receiving country's economy and its
development through diverse channels, including income,
consumption, investment, government policies, potential
parental absence, and removal of potential entrepreneurial
individuals from the community. In view of the economic
significance of remittance flows to North African economies,
this paper utilizes an econometric model aimed at
empirically evaluating the growth impact of remittances on
four receiving economies during the period from 1980 to
2007. The model focuses on assessing the role of financial
development in determining the growth impact of remittance
flows to the region. The paper is organized in four main
sections. Section two looks at the scope of migration
movements in the four North African countries and the
importance of remittance flows to the region. It shows the
historical, current and future importance of remittance
flows to North African economies. The third section
elaborates upon what is known about the economic impacts of
remittances at large. It details the major potential
macroeconomic impacts of remittances through a literature
review on growth and remittances. It also looks at the
various channels through which remittances can impact
growth. Section four presents an econometric model
evaluating the growth impact of remittances with and without
the financial sector variable and the results. The fifth
section summarizes the main results and concludes.
Citation
“Adams, Richard; van den Bosch, Marie Alienor; Keller, Jennifer; Mottaghi, Lili. 2009. The Impact of Remittances on Growth Evidence from North African Countries. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/c67387fc-b630-5520-9f63-6baa77e7c2cb License: CC BY 3.0 IGO.”