Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/257084 
Year of Publication: 
2020
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 8 [Issue:] 2 [Article No.:] 35 [Publisher:] MDPI [Place:] Basel [Year:] 2020 [Pages:] 1-26
Publisher: 
MDPI, Basel
Abstract: 
In this study, we explore the hypotheses that (a) workers' remittances enhance economic growth in Latin American countries, and (b) workers' remittances help reduce poverty in Latin American countries. In recent decades, workers' remittances have become an important source of income for many developing countries and, as a global aggregate, workers' remittances are the largest source of foreign financing after foreign direct investment. This paper analyzes the effects of workers' remittances on economic growth and poverty in 21 Latin American countries. The study uses annual data covering all Latin American countries for the period 1980-2018. We employ panel least squares and panel fully-modified least squares (FMOLS) methods. In addition, we estimate the short-run and long-run effects of workers' remittances on economic growth and poverty on individual countries with the Autoregressive Distributed Lag (ARDL-ECM) approach to co-integration analysis. The results reveal that workers' remittances have a positive effect on long-run economic growth in the majority of the countries studied, but have mixed effects in the short-run. They also suggest that workers' remittances tend to lower poverty rates in Latin America.
Subjects: 
economic growth
ARDL
FMOLS
Latin America
poverty
remittances
JEL: 
F24
F43
I30
O47
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article

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