연구정보
Follow the Money: Remittance Responses to FDI Inflows
아프리카ㆍ 중동 일반 / 중남미 기타 국외연구자료 기타 Coon, Michael and Neumann, Rebecca MPRA 발간일 : 2015-02-21 등록일 : 2015-04-20 원문링크
Abstract
This paper explores the relationship between foreign direct investment and remittance flows. Using a panel of 79 countries, we estimate a random effects model and find a positive and significant relationship between the two capital flows. We account for the potential endogeneity of FDI to remittances by utilize a two-stage Instrumental Variables approach. These findings are indicative of a desire among the emigrant community to invest their income earned abroad in their home countries. We also explore regional characteristics to examine whether this relationship differs across regions. Consequently, we find this effect to be particularly important for Sub-Saharan African (SSA) and Latin American and Caribbean (LAC) countries.