The impact of remittances on savings, capital and economic growth in small emerging countries

Autor: Zouhair Ait Benhamou, Lesly Cassin
Přispěvatelé: Equipe d'Economie Le Havre Normandie (EDEHN), Université Le Havre Normandie (ULH), Normandie Université (NU)-Normandie Université (NU), EconomiX, Université Paris Nanterre (UPN)-Centre National de la Recherche Scientifique (CNRS), Normandie Université (NU), Université Le Havre Normandie - Faculté des Affaires Internationales (FAI)
Jazyk: angličtina
Rok vydání: 2021
Předmět:
Counterfactual thinking
Economics and Econometrics
Small island developing states
Overlapping generations model
Human capital
JEL: J - Labor and Demographic Economics/J.J2 - Demand and Supply of Labor/J.J2.J24 - Human Capital • Skills • Occupational Choice • Labor Productivity
JEL: F - International Economics/F.F6 - Economic Impacts of Globalization/F.F6.F63 - Economic Development
JEL: J - Labor and Demographic Economics/J.J1 - Demographic Economics/J.J1.J11 - Demographic Trends
Macroeconomic Effects
and Forecasts
0502 economics and business
Economics
JEL: O - Economic Development
Innovation
Technological Change
and Growth/O.O1 - Economic Development/O.O1.O11 - Macroeconomic Analyses of Economic Development
050207 economics
10. No inequality
Emerging markets
Productivity
ComputingMilieux_MISCELLANEOUS
Migration
Endogenous fertility
Caribbean
Development economics
050208 finance
JEL: F - International Economics/F.F2 - International Factor Movements and International Business/F.F2.F24 - Remittances
[QFIN]Quantitative Finance [q-fin]
05 social sciences
1. No poverty
JEL: O - Economic Development
Innovation
Technological Change
and Growth/O.O1 - Economic Development/O.O1.O15 - Human Resources • Human Development • Income Distribution • Migration
JEL: O - Economic Development
Innovation
Technological Change
and Growth/O.O5 - Economywide Country Studies/O.O5.O54 - Latin America • Caribbean
Capital stock
Scale (social sciences)
Capital (economics)
8. Economic growth
Demographic economics
Small Island Developing States
Zdroj: Economic Modelling
Economic Modelling, 2021, 94, pp.789-803. ⟨10.1016/j.econmod.2020.02.019⟩
Economic Modelling, Elsevier, 2020, ⟨10.1016/j.econmod.2020.02.019⟩
Economic Modelling, Elsevier, 2020
ISSN: 0264-9993
DOI: 10.1016/j.econmod.2020.02.019⟩
Popis: International audience; This paper uses an OLG model in order to capture the economic and demographic effects of remittances in small open economies. We describe household decisions on education and savings, where elderly people receive remittances and domestic transfers from their children. Due to a boost in returns from human capital investments as well as higher levels of productivity elsewhere, remittances increase education at the expense of domestic savings. A significant negative correlation is thus found between domestic savings and remittances in a large set of countries. The model also predicts inverted U-shaped curves between remittances and economic growth because of this substitution effect. Furthermore, we conduct a counterfactual analysis on five Caribbean islands, which shows that different strategies regarding domestic transfers and remittances may be successful in fostering growth, depending on the scale of migration or the transfer rate.
Databáze: OpenAIRE
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