Does remittance spur economic growth? evidence from postsocialist Armenia and Georgia /

Worker remittances are the second largest source of external finance for developing countries after FDIs, which has increased interest in measuring their effect on economic growth in underdeveloped economies. In this study, I analyze the causal relationship between remittances and economic growth in...

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Bibliographic Details
Main Author: Vusal Ahmadov
Corporate Author: The European Union’s contention in the reshaping global economy (2022) (Szeged)
Format: Article
Published: 2022
Series:Proceedings of the European Union’s Contention in the Reshaping Global Economy
Kulcsszavak:Gazdasági növekedés - Örményország, Gazdaságpolitika - Örményország, Gazdasági növekedés - Grúzia, Gazdaságpolitika - Grúzia
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doi:10.14232/eucrge.2022.10

Online Access:http://acta.bibl.u-szeged.hu/75074
Description
Summary:Worker remittances are the second largest source of external finance for developing countries after FDIs, which has increased interest in measuring their effect on economic growth in underdeveloped economies. In this study, I analyze the causal relationship between remittances and economic growth in two post-socialist countries - Armenia and Georgia, which experienced significant emigration after the collapse of socialism. To minimize endogeneity problems, I employ POLS (pooled ordinary least squares) and FE (fixed effects) estimations in assessing the effects of remittance on economic growth. Data set covers the 1997-2019 period. Results show that remittances have a positive effect on economic growth in these small post-socialist economies.
Physical Description:176-188
ISBN:978-963-306-852-6