The Impact of Remittances on Growth Evidence from North African Countries

Adams, Richard; van den Bosch, Marie Alienor; Keller, Jennifer; Mottaghi, Lili

The Impact of Remittances on Growth Evidence from North African Countries

Autores

Adams, Richard

van den Bosch, Marie Alienor

Keller, Jennifer

Mottaghi, Lili

Editor

World Bank, Washington, DC

Descripción

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.

Palabras clave

AGRICULTURAL PRODUCTION, AMOUNT OF REMITTANCES, ASYLUM, BALANCE OF PAYMENT, BALANCE OF PAYMENT STATISTICS, BALANCE OF PAYMENTS, BALANCE OF PAYMENTS STATISTICS, BANK DATA, BANKS, BENEFITS OF REMITTANCES, BLACK MARKET, BLACK MARKET PREMIUM, BOTH SEXES, BRAIN DRAIN, BUSINESS FORMATION, BUSINESS OWNERSHIP, CAPITA REMITTANCES, CAPITAL ACCUMULATION, CAPITAL FLOWS, CAPITAL FORMATION, CAPITAL INVESTMENT, CHILD HEALTH, CHILD LABOR, CITIZENSHIP, COMPENSATION OF EMPLOYEES, CONTRIBUTION OF REMITTANCES, COUNTRY OF ORIGIN, CREDIT CONSTRAINTS, CREDITWORTHINESS, CURRENT ACCOUNT, DATA ON REMITTANCES, DEBT, DEMOGRAPHIC TRENDS, DEPOSITS, DESTINATION COUNTRY, DETERMINANTS OF REMITTANCES, DEVELOPING COUNTRIES, DIASPORA, EARNINGS, ECONOMIC CRISIS, ECONOMIC DEVELOPMENT, ECONOMIC DEVELOPMENTS, ECONOMIC DOWNTURNS, ECONOMIC GROWTH, EDUCATION LEVEL, EDUCATION OF CHILDREN, EDUCATIONAL ATTAINMENT, EFFECT OF REMITTANCES, EFFECTS OF REMITTANCES, ELEMENTARY SCHOOL, EMIGRATION, EMIGRATION COUNTRIES, EMPLOYMENT CREATION, EMPLOYMENT OPPORTUNITIES, ENROLLMENT, EXCHANGE RATE, EXCHANGE RATES, EXPENDITURE, EXPENDITURES, EXTENDED FAMILY, EXTERNAL FINANCING, FAMILIES, FAMILY FORMATION, FAMILY REUNIFICATION, FEMALE EDUCATION, FEMALE LABOR FORCE, FINANCES, FINANCIAL DEVELOPMENT, FINANCIAL FLOWS, FINANCIAL INTERMEDIATION, FINANCIAL MARKETS, FOREIGN CURRENCY, FOREIGN EXCHANGE, FOREIGN WORKERS, GLOBAL DEVELOPMENT, GLOBAL DEVELOPMENT FINANCE, GOVERNMENT POLICIES, GROSS NATIONAL PRODUCT, GROUPS OF PEOPLE, HEALTH CARE, HOME COUNTRIES, HOME COUNTRY, HOST COUNTRIES, HOUSEHOLD INCOME, HOUSEHOLD INVESTMENT, HOUSEHOLD LEVEL, HOUSEHOLD SURVEYS, HOUSEHOLD WELFARE, HUMAN CAPITAL, HUSBANDS, ILLITERACY, IMMIGRANT, IMMIGRATION, IMPACT OF MIGRATION, IMPACT OF REMITTANCES, IMPORTANCE OF REMITTANCE FLOWS, IMPORTANCE OF REMITTANCES, INCOMES, INCREASE IN REMITTANCES, INEQUALITY, INFANT, INFANT MORTALITY, INFANT MORTALITY RATES, INFORMAL CHANNELS, INSTITUTIONAL REFORMS, INTERNATIONAL MIGRANT, INTERNATIONAL MIGRANTS, INTERNATIONAL MIGRATION, INTERNATIONAL REMITTANCE, INTERNATIONAL REMITTANCES, INTERNATIONAL TRADE, INVESTMENT IN EDUCATION, INVESTMENTS IN EDUCATION, IRREGULAR MIGRATION, JOB-SEEKERS, LABOR FORCE, LABOR MARKET, LABOR MARKETS, LABOR MIGRANTS, LABOR MOBILITY, LABOR SUPPLY, LARGE POPULATION, LEGAL MIGRATION, LEVELS OF EDUCATION, LIQUIDITY, LIQUIDITY CONSTRAINTS, LIVING STANDARDS, LOW-INCOME COUNTRIES, MACROECONOMIC DETERMINANTS, MACROECONOMIC LEVEL, MEDICAL CARE, MENTAL HEALTH, MIGRANT REMITTANCES, MIGRANT SAVINGS, MIGRANT WORKERS, MIGRANTS, MIGRATION FLOWS, MIGRATION POLICIES, MIGRATION POLICY, MIGRATION PROCESS, MIGRATION STATISTICS, MIGRATORY MOVEMENTS, NATIONALS, NEW BUSINESSES, NUMBER OF CHILDREN, OPPORTUNITIES FOR ENTREPRENEURSHIP, PHYSICAL CAPITAL, POLICY MAKERS, POPULATION CENSUS, POPULATION CENSUSES, POPULATION GROWTH, POPULATION MOVEMENTS, POTENTIAL MIGRANTS, RATES OF RETURN, RECEIPT, RECIPIENTS OF REMITTANCES, RECREATION, REFUGEE, REMITTANCE, REMITTANCE DATA, REMITTANCE FLOWS, REMITTANCE IMPACT, REMITTANCE INFLOWS, REMITTANCE MONIES, REMITTANCE RECEIVING, REMITTANCE RECEIVING HOUSEHOLDS, REMITTANCE RECIPIENTS, REMITTANCE-RECEIVING HOUSEHOLDS, REMITTANCES, REMITTANCES FOR INVESTMENT, REMITTANCES REMITTANCES, REMITTANCES TRANSFERS, RESPECT, RETURN MIGRANTS, RETURNEES, RURAL AREAS, SAVINGS FROM MIGRATION, SAVINGS RATES, SCARCE RESOURCES, SCHOOL ATTENDANCE, SCHOOL-AGE CHILD, SEASONAL MIGRANTS, SKILLED MIGRANTS, SKILLED WORKERS, SOCIAL DEVELOPMENT, SOURCE OF INCOME, SPOUSE, TEENAGERS, TEMPORARY MIGRANTS, TOTAL AMOUNT OF REMITTANCES, UNEMPLOYMENT, UNEMPLOYMENT RATES, UNSKILLED LABOR, URBAN AREAS, URBAN CENTERS, URBAN WOMEN, USE OF REMITTANCES, VILLAGES, VULNERABILITY, WAR, WAR RECONSTRUCTION, WORK HOURS, WORKER REMITTANCES, YOUNG CHILDREN, YOUNG MEN, YOUNG WOMEN