Remittance Inflow and Economic Growth: The Case of Georgia
Remittance inflow become one of the main source of capital flows in the world. It is noted that remittance is very effective in promoting household welfare and as an alternative source of capital inflow. However in it uncertain whether or not it leads to economic growth. This article examines the effects of remittances inflow on economic growth in Georgian republic. The impact of remittance inflow on GDP growth was analyzed and tested by Unit Root Test, Johansen Co-integration and VAR Granger Causality/Block Exogeneity Wald Tests. In the paper the quarterly data interval from the first quarter of 1999 to third quarter of 2015 was used. As a result it was found out that that there is a nexus between remittance and GDP and it is concluded that remittance leads to increase in GDP growth.
Ahortor, C. R. K., and Adenutsi, D. E. (2009). The Impact of Remittances on Economic Growth in Small-Open Developing Countries. Journal of Applied Science, 9(18), pp.3275-3286
Barajas, A., Chami, R., Fullenkamp, C., Gapen, M., Montiel, P. (2009). Do workers’ remittances Promote economic growth? IMF Working Paper WP/09/153.
Bayar, Y.(2015). Impact of Remittances on the Economic Growth in the Transitional Economies of the European Union, Economic Insights – Trends and Challenges, Vol.IV(LXVII) No. 3/2015
Giuliano, P., Ruiz-Arranz, M. (2009). Remittances, financial development, and growth, Journal of Development Economics 90, pp. 144–152.
Ivakhnyuk, I., (2006). Migrations in the CIS Region: Common Problems and Mutual Benefits, International Symposium on International Migration and Development.
Kiio, J., Soi, N., Buigut,K., (2014). The Impact of Workers’ remittances On Economic Growth: Evidence from Kenya, Journal of Economics and Sustainable Development www.iiste.org ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.5, No.26, 2014
Lopez, H., Molina, L., Bussolo. M. (2007). Remittances and the real exchange rate, https://openknowledge.worldbank.org/bitstream/handle/10986/7069/wps4213.pdf?sequence=1, Accessed 25 December 2015.
Leon L.M. and Piracha M. (2004), International Migration and the Role of Remittances in Eastern Europe, International Migration, 42 65-83.
Nyamongoa, E.M., Misatib, R.N., Kipyegonb, L., Ndirangua, L. (2012). Remittances, financial Development and economic growth in Africa, Journal of Economics and Business 64, pp. 240– 260.
Ramey, G., Ramey, V.A. (1995). Cross-country evidence on the link between volatility and growth, American Economic Review 85 (5), pp. 1138–1151.
Pradhan, G., Upadhyay, M., Upadhyaya, K. (2008). Remittances and economic growth in developing Countries, the European Journal of Development Research 20(3), pp. 497–506.
Ramirez, M.D. and Sharma, H. (2008) Remittances and Growth in Latin America: A Panel Unit Root and Panel Cointegration Analysis, Department of Economics Yale University, Working Paper No. 51.
Jawaid S.T and Raza S.A. (2012). Remittances, Growth and Convergence: Evidence from Developed and Developing Countries,Munich Personal RePEc Archive (MPRA) Paper No 39002 Online at: http://mpra.ub.unimuenchen. de/39002.
Waheed,A. Aleem,A. (2008), workers’ remittances and economic growth: Empirical evidence from Pakistan, Journal of social science and humanities 47(1) pp.1-12
Sofranko, A.J. Idris, K. (1999), Use of Overseas Migrants’ Remittances to the Extended Family for Business Investment, a Research Note. Rural Sociology 64:464-481.
Sulaimanova, B. & Bostan, A. (2014). International Migration: A Panel Data Analysis of the Determinants of Emigration from Tajikistan and Kyrgyzstan. Eurasian Journal of Business and Economics 7 (13): 1-9.
TRANSFER OF COPYRIGHT
JRBEM is pleased to undertake the publication of your contribution to Journal of Research in Business Economics and Management.
The copyright to this article is transferred to JRBEM(including without limitation, the right to publish the work in whole or in part in any and all forms of media, now or hereafter known) effective if and when the article is accepted for publication thus granting JRBEM all rights for the work so that both parties may be protected from the consequences of unauthorized use.
The copyright transfer covers the exclusive right to reproduce and distribute the article, including reprints, translations, photographic reproductions, microform, electronic form (offline, online) or any other reproductions of similar nature.
The author’s warrant that their contribution is an original work not published elsewhere, that they have the full power to make this grant and that the article contains no matter unlawful or which invades the right to privacy or infringes any proprietary right.
This Form must be signed by the lead author or, in the case of a "work made for hire," by the employer and must be received by JRBEM before processing of the manuscript for publication can be completed.
Authors should understand that consistent with JRBEM's policy of encouraging dissemination of information, each work published by JRBEM appears with the JRBEM copyright and the following notice:
"Intellectual properties and scientific inventions published with JRBEM are protected under International and Federal Copyright Laws and Treaties. Permission to make digital or hard copies of part or all of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than JRBEM must be honored. Abstracting with credit is permitted. To copy otherwise, to republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee."
However, it is at the discretion of JRBEM if the copyright notice should be included in the published manuscript.
The JRBEM copyright arrangements allow Cornell University Library non-exclusive and irrevocable license to distribute or certify that the work is available under JRBEM license that conveys these rights.