Discussion Paper

No. 2012-8 | January 25, 2012
Through Which Channels Can Remittances Spur Economic Growth in MENA Countries?

Abstract

This paper studies the remittances’ effect on economic growth. Using panel data techniques, the authors estimate several specifications to provide support of such relationship for MENA countries over the period 1980–2009. The findings provide new robust evidence on how remittances are used in MENA countries and show the main channels which may interfere in this process. Estimation outcomes show that the most important part of remittances is consumed and that remittances stimulate growth only when they are invested. Moreover, empirical results suggest that remittances can enhance growth by encouraging human capital accumulation. Human capital is therefore an effective channel through which remittances stimulate growth in MENA countries.

JEL Classification

E21 F21 G22 J61 O16

Cite As

Sami Ben Mim and Mohamed Sami Ben Ali (2012). Through Which Channels Can Remittances Spur Economic Growth in MENA Countries?. Economics Discussion Papers, No 2012-8, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2012-8

Assessment



Comments and Questions


Anonymous - Referee Report 1
February 02, 2012 - 09:53

See attached file


Sami Ben Mim and Ben Ali Mohamed Sami - Reply to Referee Report 1
July 23, 2012 - 09:44

see attached file