Remittances and Institutions : Are Remittances a Curse? /

This paper addresses the complex and overlooked relationship between the receipt of workers' remittances and institutional quality in the recipient country. Using a simple model, we show how an increase in remittance inflows can lead to deterioration of institutional quality - specifically, to...

पूर्ण विवरण

ग्रंथसूची विवरण
मुख्य लेखक: Dagher, Jihad
अन्य लेखक: Abdih, Yasser, Chami, Ralph, Montiel, Peter
स्वरूप: पत्रिका
भाषा:English
प्रकाशित: Washington, D.C. : International Monetary Fund, 2008.
श्रृंखला:IMF Working Papers; Working Paper ; No. 2008/029
ऑनलाइन पहुंच:Full text available on IMF
विवरण
सारांश:This paper addresses the complex and overlooked relationship between the receipt of workers' remittances and institutional quality in the recipient country. Using a simple model, we show how an increase in remittance inflows can lead to deterioration of institutional quality - specifically, to an increase in the share of funds diverted by the government for its own purposes. Empirical testing of this proposition is complicated by the likelihood of reverse causality. In a cross section of 111 countries we document a negative impact of the ratio of remittance inflows to GDP on domestic institutional quality, even after controlling for potential reverse causality. We find that a higher ratio of remittances to GDP is associated with lower indices of control of corruption, government effectiveness, and rule of law.
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भौतिक वर्णन:1 online resource (31 pages)
स्वरूप:Mode of access: Internet
आईएसएसएन:1018-5941
अभिगमन:Electronic access restricted to authorized BRAC University faculty, staff and students