| dc.description.abstract | Purpose: Remittance has become one of the most important sources of foreign currency
inflows toward lower- and middle-income countries. Every year its significance is increasing
both in size and in growth rate. Now, as it is evident that this has stumbled amid the
worldwide outbreak of the Novel Corona virus pandemic, trying to find out how much this
strike may hamper economies, this study attempts to observe the impacts of personal
remittances on economic growth using panel data consisting of 102 countries from 1998-2018.
Methodology: To analyze the data collected from World Bank and IMF for this study, the
fixed effects multiple regression model has been used.
Findings: For all the countries in the sample there found a weak relationship between
remittances and growth, but the coefficients are statistically insignificant. The same goes for
the question of whether there is any non-linearity in the effect of personal remittances. Also,
the effects of remittances on economic growth don‟t change with the countries‟ level of
income.
Practical Implications: These outcomes imply that personal remittances don‟t invariably
affect economic growth but need proper policy support and wise usage to be usefully affecting
growth which has important practical implications for policymakers and future studies on
remittances.
Limitations: Some of the highest remittances receiving countries could not be included in this
study due to the unavailability of necessary data. | en_US |
