Session 3B: Migration and Remittances (Auditorium 2)
Moderator: Guntur Sugiyarto
Measuring the contribution of remittance income and household expenditures to the sectoral and overall economic growth of migrant origin countries: Input-output analysis for the Philippines
Aiko Kikkawa, Kijin Kim, Raymond Gaspar and Christian Marvin Zamora
Plausible channels through which consumption induced by receipt of remittances could affect the general economy by mapping representative household income and expenditure survey data to the national input output table. The study elucidates the characteristics of the expenditure patters of the remittance-receiving households and how their spending and saving contribute to the sectoral economy and the overall growth of the economy, using Philippines as a case study.
JEL Code/s: F22, F24, O15, D12, D14, D57
Understanding determinants of remittances to Pakistan
David de Padua, Irfan Qureshi, Matteo Lanzafame, Kiyoshi Taniguchi
We investigate the drivers of remittances to Pakistan. We estimate the impact of shocks to macroeconomic variables on remittance growth using Bayesian VAR models. We unpack how the influence of these factors changed over time through a historical decomposition. We find remittances to have a large trend component, suggesting that structural factors are the critical driver of its growth. Nevertheless, macroeconomic variables domestic and abroad can impact growth and the contributions of these factors vary over time and across countries. Understanding these factors can help policymakers assess how remittances might react to changes to macroeconomic conditions domestically and abroad.
JEL Code/s: F24
Remittance inflow, institutional quality and economic growth in Nepal
Pradeep Panthi (ADBI) and Jeevnath Devkota (Nagoya City Board of Education, Nagoya)
This paper primarily examines the impact of remittance inflows on economic growth using the annual time series data of Nepal from 1993 to 2020. The study further investigates whether institutional quality fosters the effects of remittance inflows on economic growth or not. The bound test approach of the cointegration and error correction model (ECM) under the autoregressive distributed lag model (ARDL) is the estimation technique. The result shows that remittance inflow is significant and positive in enhancing the economic growth of Nepal, although remittance is primarily used in primary consumption. The leapfrogging growth of the service sector and stabilized consumption could be channels of economic growth effects of remittances. Besides this, institutional quality is negative and significant to intermediate the impact of remittance inflow on economic growth. Therefore, the economy should give proper attention to improving institutional quality which is taken as a social technology of steady economic growth to channel the remittance inflow into the productive sector.
JEL Code/s: C22, E51, F24, O43
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