Remittance Literature Review

Literature Review

As I already mention that there is huge amount of literature on the topic remittance and the economic growth. Studies suggest that positive relationship between the economic growth and remittance. Yes, there is large number of studies which focus and prove that the economic growth is also impacted by remittance positively. Moving ahead with this fact we can’t ignore the negative impact of the remittance on economy. Some of the literature are discuss below.

In the period of 90s there was a study Bliss (1989) he found and prove that remittance can be used as a good tool to fill the gap of foreign currency shortage. He argues that some of the developing countries can’t achieve the economic growth because of shortage of foreign

et. Al (2008) use data from 1980-2004 with observing 195 panel data they find the positive effects of workers remittance and the input on economic growth in the developing country. They find as other many literature positive impact adding the variable polity (politics) more democratic countries get more score and autocratic gets less score does raise the rate of economic growth after a period.

Senbeta (2013) tries to present the effect and the source of economic growth by the remittance with using 50 countries panel data. Senbeta present two findings in one hand remittance have positive relationship and effects with economic growth and in another hand they find no significant impact on total factor productivity. So, this paper clears that the relationship of positive with capital accumulation and conflicting effect in TFP.

Zuniga (2011) Investigates and finds that remittance have positive, albeit small impact on economic growth without considering the role of intuitions. They investigate the macroeconomic level of developing countries using panel VAR. they finds geographical region also one factor. The evidence from Eastern European economics proves that they receive greatest benefit while comparing to Asia and Americas. Author also add that African countries can’t take benefits and do not have statistically significant impact of remittance on economic

Authors adds threshold values of total credit to the private sector and deposit money bank assets, above which the total effect of remittance on growth is positive.

Azam and khan (2011) Running the linear regression of two remittance receiving and same features countries i.e. Azerbaijan and Arminia. They empirically proves that workers remittance are significant for the acceleration of growth in the field of study. Recommending to formulate the policies and encouraging to utilize more efficiently in order to improve society living standard. They conclude their paper by adding that remittance is not the sole but very decisive and eminent in its nature.

Moreover there was one article published by journal of applied science, author CRK, Ahortor and DE Adentutsi (2011) finds the positive relationship of remittance and economic growth even different cross regional testing. The data are from African, Latin American, and also from Caribbean countries. It proves and authors argues that contemporaneously, remittance contributes more on long run. So, we can say that the positive impact on both short and long run. If a 10% increase in investment included 5.42 percentage rise in the income level of these regions. It proves the remittance had both contemporaneous as