Do Remittances Promote Economic Growth? New Evidence from India
Journal article
Authors | Ghosh Dastidar, S. and Apergis, N |
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Abstract | This study investigates the empirical relationship between remittances and economic growth of India, placing special attention on the non-linearity of this association. Previous studies on India have ignored the non-linear nature of the remittance-growth nexus. The study employs methods from the ARDL model framework to explore the non-linearity and establishes that remittances do not exhibit any growth effect in lower quantiles and up to 0.50, but the impact increases monotonically, getting more pronounced as the quantile increases. In other words, inward remittances must exceed a threshold to start affecting economic growth positively. It is argued that this behaviour of the remittances is the consequence of a combination of factors like patterns of utilisation (or, misutilisation) of the receipts, India’s trade balance, a weak industrial sector, the lack of entrepreneurial opportunities, the lack of financial inclusion, and the exploitation of poor migrant workers. |
Keywords | Remittances; Economic Growth; India; time series analysis |
Year | 2022 |
Journal | Economic Issues |
Journal citation | 27 (1), pp. 11-37 |
Publisher | Nottingham Trent University |
ISSN | 1363-7029 |
Web address (URL) | http://www.economicissues.org.uk/index.html |
http://www.economicissues.org.uk/Vol27.html#a2 | |
Accepted author manuscript | License File Access Level Open |
Output status | Published |
Publication dates | |
Online | Mar 2022 |
Publication process dates | |
Accepted | 2021 |
Deposited | 13 Jun 2022 |
https://repository.derby.ac.uk/item/956w0/do-remittances-promote-economic-growth-new-evidence-from-india
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Accepted author manuscript
SGD NA 2022 Economic Issues.pdf | ||
License: CC BY-NC-ND 4.0 | ||
File access level: Open |
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