본문 바로가기
KERD
논문KCI 등재

Nexus between Remittance and Household Consumption: Fresh Evidence from Symmetric or Asymmetric Investigation

Md. Qamruzzaman|Wei Jianguo
경제연구소 (Hanyang Economic Research Institute)|2020.09|Journal of Economic Development|제45권 제3호|pp. 1-27|DOI 10.35866/caujed.2020.45.3.001

2

조회

0

다운로드

0

인용

0

참고문헌

키워드

SymmetryRemittanceHousehold ConsumptionSystem-GMM Asymmetry
주제분류경제학

초록

There is no conclusive evidence available in empirical literature regarding the patter of relationship, like symmetry or asymmetry, between remittances and household consumption at the aggregate level. With this study, we empirically investigated the nexus between Remittance and Household consumption under the assumption of both symmetric and asymmetric from 1993 to 2017 of a panel of 105 countries. Symmetry investigation performed with Panel ARDL proposed by Pesaran et al. (1999) and asymmetry test executed with the idea of nonlinear ARDL proposed by Shin et al. (2014). For establishing directional causality, we also performed a Panel Granger-causality test under the error correction term. Study findings unveiled an asymmetric relationship between remittance flows and household consumption both in the long run and in the short run, however, the coefficients elasticity explained greater magnitude in the short-run than the long run. Study findings exposed unidirectional causality from remittance to household consumption in the short-run. The effect of remittance inflows on household consumption at the aggregate level is evident. Therefore, the government should persuade integrated economic policy for the effective deployment of remittance flows in productive investment for increasing aggregate production and economic welfare at large.

Abstract

There is no conclusive evidence available in empirical literature regarding the patter of relationship, like symmetry or asymmetry, between remittances and household consumption at the aggregate level. With this study, we empirically investigated the nexus between Remittance and Household consumption under the assumption of both symmetric and asymmetric from 1993 to 2017 of a panel of 105 countries. Symmetry investigation performed with Panel ARDL proposed by Pesaran et al. (1999) and asymmetry test executed with the idea of nonlinear ARDL proposed by Shin et al. (2014). For establishing directional causality, we also performed a Panel Granger-causality test under the error correction term. Study findings unveiled an asymmetric relationship between remittance flows and household consumption both in the long run and in the short run, however, the coefficients elasticity explained greater magnitude in the short-run than the long run. Study findings exposed unidirectional causality from remittance to household consumption in the short-run. The effect of remittance inflows on household consumption at the aggregate level is evident. Therefore, the government should persuade integrated economic policy for the effective deployment of remittance flows in productive investment for increasing aggregate production and economic welfare at large.

참고문헌 (81)

  1. Acosta P., "Remittances and Development: Lessons from Latin America", pp.87~132 (2008)
  2. Adams Jr R. H., "Remittances, Household Expenditure and Investment in Guatemala", World Development, 38, pp.1626~1641 (2010)
  3. Adams Jr R. H., "Do International Migration and Remittances Reduce Poverty in Developing Countries?", World Development, 33, pp.1645~1669 (2005)
  4. Adams R., "Research and Policy Perspectives on Internal and International Migration", pp.101~130 (2008)
  5. Remittances and Poverty in Ghana, "Adams R. H. J.", The World Bank, ~ (2006)
  6. Aggarwal R., "Do Remittances Promote Financial Development?", Journal of Development Economics, 96, pp.255~264 (2011)
  7. Ahmed M. S., "Migrant Workers Remittance and Economic Growth : Evidence from Bangladesh", ASA University Review, 4, pp.1~13 (2010)
  8. Ahmed V., "Remittances and Household Welfare: A Case Study of Pakistan", ~ (2010)
  9. Akpa E., "Private Remittances Received and Household Consumption in Ghana (1980-2016): An ARDL Analysis with Structural Breaks", ~ (2018)
  10. Al Mamun M., "Remittance and Domestic Labor Productivity: Evidence from Remittance Recipient Countries", Economic Modelling, 47, pp.207~218 (2015)
  11. Amuedo-Dorantes C., "Workers’ Remittances and the Real Exchange Rate : A Paradox of Gifts", World Development, 32, pp.1407~1417 (2004)
  12. Arellano M., "Another Look at the Instrumental Variable Estimation of Error-Components Models", Journal of Econometrics, 68, pp.29~51 (1995)
  13. Azizi S., "The Impacts of Workers’ Remittances on Human Capital and Labor Supply in Developing Countries", Economic Modelling, 75, pp.377~396 (2018)
  14. Bahmani-Oskooee M., "Asymmetry Effects of Exchange Rate Changes on Domestic Production: Evidence from Nonlinear ARDL Approach", Australian Economic Papers, 55, pp.181~191 (2016)
  15. Bansak C., "How Do Remittances Affect Human Capital Formation of School-Age Boys and Girls?", American Economic Review, 99, pp.145~148 (2009)
  16. Bayes A., "Remittance and Poverty Reduction", ~ (2015)
  17. Beaton K., "Smooth Operator: Remittances and Household Consumption during Fiscal Shocks", The BE Journal of Macroeconomics (2018)
  18. Bergheim S., "Long-run Growth Forecasting" (2008), Springer
  19. Bettin G, "A Dynamic Double Hurdle Model for Remittances: Evidence from Germany", Economic Modelling (2018)
  20. Bettin G., "Financial Development and Remittances : Micro-Econometric Evidence", Economics Letters, 115, pp.184~186 (2012)
  21. Remittances and Investment, "Bjuggren P.", Centre for Excellence for Science and Innovation Studies (CESIS), ~ (2010)
  22. Blundell R., "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models", Journal of Econometrics, 87, pp.115~143 (1998)
  23. Breusch T.S, "The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics", The Review of Economic Studies, 47, pp.239~253 (1980)
  24. Buch C. M., "Worker Remittances and Capital Flows to Developing Countries", International Migration, 48, pp.89~117 (2010)
  25. Calderón C., "The Direction of Causality between Financial Development and Economic Growth", Journal of Development Economics, 72, pp.321~334 (2003)
  26. Calero C., "Remittances, Liquidity Constraints and Human Capital Investments in Ecuador", World Development, 37, pp.1143~1154 (2009)
  27. Chowdhury MB, "Remittances Flow and Financial Development in Bangladesh", Economic Modelling, 28, pp.2600~2608 (2011)
  28. Clément M., "Remittances and Household Expenditure Patterns in Tajikistan: A Propensity Score Matching Analysis", ~ (2011)
  29. Combes J-L., "Remittances and Household Consumption Instability in Developing Countries", World Development, 39, pp.1076~1089 (2011)
  30. Coulibaly D., "Remittances and Financial Development in Sub-Saharan African Countries : A System Approach", Economic Modelling, 45, pp.249~258 (2015)
  31. De P. K., "Impact of Remittances on Household Income, Asset and Human Capital : Evidence from Sri Lanka", Migration and Development, 1, pp.163~179 (2012)
  32. Edelbloude J., "Do Remittances Respond to Revolutions? The Evidence from Tunisia", Research in International Business and Finance, 42, pp.94~101 (2017)
  33. Escribà-Folch A., "Remittances and Democratization", International Studies Quarterly, 59, pp.571~586 (2015)
  34. Feeny S., "Remittances and Economic Growth:Larger Impacts in Smaller Countries?", The Journal of Development Studies, 50, pp.1055~1066 (2014)
  35. Giuliano P., "Remittances, Financial Development, and Growth", Journal of Development Economics, 90, pp.144~152 (2009)
  36. Impact of Remittances on Poverty and Financial Development in Sub-Saharan Africa, "Gupta S.", International Monetary Fund, ~ (2007)
  37. Hadri K., "Testing for Stationarity in Heterogeneous Panel Data", The Econometrics Journal, 3, pp.148~161 (2000)
  38. Im K. S., "Testing for Unit Roots in Heterogeneous Panels", Journal of Econometrics, 115, pp.53~74 (2003)
  39. IMF., "International Financial Statistics", ~ (2018)
  40. Jongwanich J., "Workers’ Remittances, Economic Growth and Poverty in Developing Asia and The Pacific Countries", United Nations Publications, ~ (2007)
  41. Kao C., "Spurious Regression and Residual-Based Tests for Cointegration in Panel Data", Journal of Econometrics, 90, pp.1~44 (1999)
  42. Kifle T., "Do Remittances Encourage Investment in Education? Evidence from Eritrea", GEFAME Journal of African Studies, 4 (2007)
  43. King R. G., "Finance, Entrepreneurship and Growth", Journal of Monetary Economics, 32, pp.513~542 (1993)
  44. Koechlin V., "International Remittances and Income Inequality : An Empirical Investigation", Journal of Economic Policy Reform, 10, pp.123~141 (2007)
  45. Lartey E. K., "Remittances, Investment and Growth in Sub-Saharan Africa", The Journal of International Trade and Economic Development, 22, pp.1038~1058 (2013)
  46. Levin A., "Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties", Journal of Econometrics, 108, pp.1~24 (2002)
  47. What is the Impact of International Remittances on Poverty and Inequality in Latin America?, "Lopez H.", The World Bank, ~ (2007)
  48. The Impact of Remittances on Poverty and Human Capital: Evidence from Latin American Household Surveys, "Lopez J. H.", The World Bank, ~ (2007)
  49. Medina C., "The Effects of Remittances on Household Consumption, Education Attendance and Living Standards: The Case of Colombia", Lecturas de Economía, pp.11~43 (2010)
  50. Menyah K., "Financial Development, Trade Openness and Economic Growth in African Countries: New Insights from a Panel Causality Approach", Economic Modelling, 37, pp.386~394 (2014)
  51. Mohanty S. K., "Economic Well-being and Spending Behaviour of Households in India: Does Remittances Matter?", Migration and Development, 3, pp.38~53 (2014)
  52. Mondal R. K., "The Impacts of International Migrants’Remittances on Household Consumption Volatility in Developing Countries", Economic Analysis and Policy, 59, pp.171~187 (2018)
  53. Nazlioglu S., "Nuclear Energy Consumption and Economic Growth in OECD Countries: Cross-Sectionally Dependent Heterogeneous Panel Causality Analysis", Energy Policy, 39, pp.6615~6621 (2011)
  54. Nwaogu U. G., "FDI, Foreign Aid, Remittance and Economic Growth in Developing Countries", Review of Development Economics, 19, pp.100~115 (2015)
  55. Nyamongo E. M., "Remittances, Financial Development and Economic Growth in Africa", Journal of Economics and Business, 64, pp.240~260 (2012)
  56. Olowa O. W., "Remittances and Household Expenditure in Rural Nigeria", Journal of Rural Economics and Development, 20 (2011)
  57. Parinduri R. A., "Remittance and Migrant Households’Consumption and Saving Patterns: Evidence from Indonesia", ~ (2008)
  58. Pedroni P., "Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors", Oxford Bulletin of Economics and Statistics, 61, pp.653~670 (1999)
  59. Pedroni P., "Panel Cointegration : Asymptotic and Finite Sample Properties of Pooled Time Series Tests with an Application to the PPP Hypothesis", Econometric Theory, 20, pp.597~625 (2004)
  60. Pesaran M. H., "General Diagnostic Tests for Cross Section Dependence in Panels", ~ (2004)
  61. Pesaran M. H., "Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure", Econometrica, 74, pp.967~1012 (2006)
  62. Pesaran M. H., "Pooled Mean Group Estimation of Dynamic Heterogeneous Panels", Journal of the American Statistical Association, 94, pp.621~634 (1999)
  63. Pesaran M. H., "Estimating Long-Run Relationships from Dynamic Heterogeneous Panels", Journal of Econometrics, 68, pp.79~113 (1995)
  64. Pesaran M. H., "A Bias-Adjusted LM Test of Error Cross-Section Independence", The Econometrics Journal, 11, pp.105~127 (2008)
  65. Quartey P., "The Impact of Migrant Remittances on Household Welfare in Ghana", ~ (2006)
  66. Raihan S., "Remittances and Household Welfare: A case study of Bangladesh", ~ (2009)
  67. Randazzo T., "Remittances and Household Expenditure Behaviour in Senegal", ~ (2013)
  68. Rao B. B., "A Panel Data Analysis of the Growth Effects of Remittances", Economic Modelling, 28, pp.701~709 (2011)
  69. The Impact of Remittances on Economic Growth and Poverty Reduction, "Ratha D.", 1~13, pp.Policy Brief, 8 (2013)
  70. Salas V. B., "International Remittances and Human Capital Formation", World Development, 59, pp.224~237 (2014)
  71. Business Cycles and Workers’ Remittances: How Do Migrant Workers Respond to Cyclical Movements of GDP at Home?, "Sayan S.", International Monetary Fund, ~ (2006)
  72. Shin Y., "Festschrift in Honor of Peter Schmidt", pp.281~314 (2014), Springer
  73. Siddique A., "Remittances and Economic Growth : Empirical Evidence from Bangladesh, India and Sri Lanka", Journal of Development Studies, 48, pp.1045~1062 (2012)
  74. Thapa S., "Remittances and Household Expenditure in Nepal:Evidence from Cross-Section Data", Economies, 5, pp.16~ (2017)
  75. Williams K., "Do Remittances Improve Political Institutions? Evidence from Sub-Saharan Africa", Economic Modelling, 61, pp.65~75 (2017)
  76. Wolde-Rufael Y., "Electricity Consumption and Economic Growth in Transition Countries : A Revisit Using Bootstrap Panel Granger Causality Analysis", Energy Economics, 44, pp.325~330 (2014)
  77. "World Development Indicators" (2017)[URL]
  78. "Record High Remittances to Low- and Middle-Income Countries in 2017" (2018)[URL]
  79. Yang D., "International Migration, Remittances and Household Investment : Evidence From Philippine Migrants’ Exchange Rate Shocks", The Economic Journal, 118, pp.591~630 (2008)
  80. Yang D., "Migrant Remittances", Journal of Economic Perspectives, 25, pp.129~152 (2011)
  81. Yang D., "Are Remittances Insurance? Evidence from Rainfall Shocks in the Philippines", The World Bank Economic Review, 21, pp.219~248 (2007)

관련 논문AI추천

Asymmetric Effects of Oil Prices on Remittances: Evidence from Sub-Saharan AfricaAKINLO ANTHONY ENISAN, AKINLO TAIWO경제연구소 · Journal of Economic Development2024 · 제49권 제2호An Analysis of the Nexus between Remittances and Economic Growth: Evidence from a Panel Analysis of 4 South Asian Countries강현수, MD Towhid Mostafiz경영경제연구소 · 아태비즈니스연구2025 · 제16권 제2호Macroeconomic Determinants of International Remittances: Evidence from Time-Series and Panel MethodsArtatrana Ratha, Eungmin Kang경제연구소 · Journal of Economic Development2020 · 제45권 제3호Causality Between Remittances and Economic Growth: Evidence From 4 Major South Asian Countries강승호, MD Towhid Mostafiz한국비교경제학회 · 비교경제연구2024 · 제31권 제1호Remittances, Investment, and Economic Growth: Substitutability or Complementarity?조정환경제연구소 · Journal of Economic Development2025 · 제50권 제1호The Dynamic Interaction among Remittances and Macroeconomic Variables: Evidence from Sub-Saharan AfricaJoseph J. French, Michael Martin, Wei-Xuan Li사람과세계경영학회 · Global Business and Finance Review2014 · 제19권 제2호

이 간행물의 다른 논문 (4건)

The Effects of Human Capital and Social Factors on the Household Income of Bangladesh: An Econometric AnalysisAl Mamun, MD. Arfanuzzamanpp. 29-49Macroeconomic Determinants of International Remittances: Evidence from Time-Series and Panel MethodsEungmin Kang, Artatrana Rathapp. 51-76Current Account Behavior, Real Exchange Rate Adjustment and Relative Output in NigeriaMohammed Shuaibu, Ibrahim K. Sulepp. 77-99Financial Inclusion in Burundi: The Use of Microfinance Services in Semi-Urban AreasBazira Bigawa Abelpp. 101-116
원문 보기