JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Empirical Link Between Growth and Remittance: Evidence from Panel Data
Author(s): Mohammad Salahuddin
Citation: Mohammad Salahuddin, (2013) "Empirical Link Between Growth and Remittance: Evidence from Panel Data," Journal of Applied Business and Economics, Vol. 14, Iss. 5, pp. 19-29
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This study investigates the relationship between migrants’ remittances and economic growth for a panel
of some Asian countries namely; Bangladesh, India, Pakistan and Philippines. Panel unit root tests were
conducted to check stationarity of data. Panel cointegration techniques are employed to examine the long
run relationship between variables. Findings indicate long run positive relationship between the two
variables meaning remittance inflow spur economic growth in these countries. However, use of
remittances in more productive sectors such as infrastructure, education, health might contribute to
reducing poverty in short run in these countries especially in small economies like Bangladesh, Pakistan
and Philippines.