연구정보
[경제] The foreign aid and remittance nexus: Evidence from South Asia
인도ㆍ남아시아 일반 국외연구자료 연구보고서 - Wiley Online Library 발간일 : 2022-11-29 등록일 : 2023-02-17 원문링크
A large body of literature has examined the determinants and impact of two external financial flows: foreign aid and remittances. Little, however, is known about the interlinking of the two flows, especially in South Asia. This study, using panel data from four South Asian countries for 1980–2015, examines the relationship between foreign aid and remittances and their links. Contrary to the traditional linear relationship reported in the literature, we find a quadratic (U-shaped) relationship between foreign aid and remittances. The results show that remittances initially fall when aid increases at the lower level of aid-dependency (aid-to-GDP); they then increase with rising aid at a higher aid-dependency level. The empirical findings also suggest that foreign aid's support of human capital increases remittances overall. Furthermore, we find that the foreign aid-led human-capital channel of migration (particularly of skilled people) reduces remittances, while the aid-led human-capital channel of economic growth increases remittance flows in South Asia. Moreover, the dynamic modelling estimation suggests that foreign aid positively affects (or complements) remittance flows in the short run but, in the long run, negatively affects remittances, indicating the substitutability of the two flows.
본 페이지에 등재된 자료는 운영기관(KIEP) 및 EMERiCs의 공식적인 입장을 대변하고 있지 않습니다.
| 이전글 | [경제] South Asia's Path to Resilient Growth | 2023-01-08 |
|---|---|---|
| 다음글 | [경제] How Special are Special Economic Zones: Evidence from South Asia | 2023-02-17 |
