Journal Article

No. 2012-33 | August 27, 2012
Through Which Channels Can Remittances Spur Economic Growth in MENA Countries? PDF Icon

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 detect 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

Citation

Sami Ben Mim and Mohamed Sami Ben Ali (2012). Through Which Channels Can Remittances Spur Economic Growth in MENA Countries?. Economics: The Open-Access, Open-Assessment E-Journal, 6 (2012-33): 1—27. http://dx.doi.org/10.5018/economics-ejournal.ja.2012-33

Assessment

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Comments and Questions


Thomas Ziesemer - Reader Comment
September 12, 2012 - 10:07

see attached file