مرکز منطقه ای اطلاع رساني علوم و فناوري - WORKERS’ REMITTANCES, INSTITUTIONAL STRUCTURE AND GROWTH

Abstract :

Developing countries, in addition to internal resources are also in great need of foreign resources within the frame of their growth targets. Workers remittances also play an important role in such foreign resources. In this study, the relationship between workers’ remittances and growth is examined in twenty-nine countries in the middle income group according to World Bank classification in the 2000-2016 period. Some of the institutional variables considered as the main source of economic growth in the growth literature in recent years are also included in the examination of the relationship between two variables. The results show that workers remittances positively and significantly affect growth in the study in which the estimator of the corrected least squares dummy variable estimator that is one of the panel data analysis estimators. But the relationship between these two variables is weak. In the models in which the variables belonging to the institutional structure are included, the relationship between the two variables is still meaningful, but it appears that the workers remittances have a weak influence on growth. The findings show that progress in the institutional structure is necessary for economic development and growth purposes but is not a sufficient factor at the point of attracting workers remittances to the host country and directing these funds to investment.