REMITTANCES AND ECONOMIC GROWTH IN TURKEY

Huseyin KARAMELIKLI, Yilmaz BAYAR

Abstract


Savings are one of the important determinants beyond the theories of economic growth. Therefore remittances and foreign direct investment inflows have importance for the countries having insufficient savings. This study examines the relationship between economic growth, remittances, foreign direct investment inflows and gross domestic savings in Turkey during the period 1974-2013 by using Autoregressive Distributed Lag approach. We found that remittances, foreign direct investment and gross domestic savings had positive impact on economic growth.

Keywords


economic growth; remittances; Autoregressive Distributed Lag analysis

References


Ahamada, I., Coulibaly, D. (2013) Remittances and growth in Sub-Saharan African countries: Evidence from a panel causality test, Journal of International Development, no.25, pp.310-324.

Arı, A., Ozcan, B. (2012) İşçi gelirleri ve ekonomik büyüme ilişkisi: Dinamik panel veri analizi, Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, no. 38, pp. 101-117.

Chami, R., Fullenkamp, C., Jahjah, S. (2003) Are immigrant remittances flows a source of capital for development?, IMF Working Paper, no.189.

Chowdhurya, M.B., Rabbi, F. (2014) Workers' remittances and Dutch Disease in Bangladesh, The Journal of International Trade & Economic Development: An International and Comparative Review, no.23(4), pp.455-475.

Dickey, D.A., Fuller, W.A. (1981) Distribution of the estimators for autoregressive time series with a unit root, Econometrica, no.49, pp.1057-1072.

Engle, R.F., Granger, C.W.J. (1987) Co-integration and error correction: Representation, estimation and testing, Econometrica, no.55(1), pp.251-276.

Giuliano, P., Ruiz-Arranz, M. (2009) Remittances, financial development, and growth, Journal of Development Economics, no.90, pp.144–152.

Goschin, Z. (2014) Remittances as an economic development factor: Empirical evidence from the CEE countries, 7th International Conference on Applied Statistics, Procedia Economics and Finance, no.10, pp.54–60.

IMF (2005) World Economic Outlook: Globalization and External Imbalances, IMF:Washington.

Johansen, S. (1988) Statistical analysis of cointegration vectors, Journal of Economic Dynamics and Control, no.12(2–3), 231–254.

Johansen, S. Juselius, K. (1990) Maximum likelihood estimation and inference on cointegration – with applications to the demand for money, Oxford Bulletin of Economics and Statistics, no.52, pp.169-210.

Karagöz, K. (2009) Workers’ remittances and economic growth: Evidence from Turkey, Journal of Yasar University, no.4(13), 1891-1908.

Kumar, R.R. , Stauvermann, P.J. (2014) Exploring the nexus between remittances and economic growth: A study of Bangladesh, International Review of Economics, no. 61(4), pp. 399-415.

Lim, S., Simmons W.O. (2015) Do remittances promote economic growth in the Caribbean Community and Common Market?, Journal of Economics and Business, no.77, pp.42–59.

López, H., Molina, L., Bussolo, M. (2007) Remittances and the real exchange rate, World Bank Policy Research Working Paper, No. 4213, Washington: World Bank.

Narayan, Paresh Kumar (2005) The saving and investment nexus for China: Evidence from cointegration tests, Applied Economics, no.37, pp.1979-1990.

Nikas, C., Blouchoutzi, A. (2014) Emigrants’ remittances and the “Dutch Disease” in small transition economies: the case of Albania and Moldova, Revista Română de Statistică, no.1/2014, pp.45-65.

Nsiah, C., Fayissa, B. (2011) Remittances and economic growth in Africa, Asia, and Latin American-Caribbean countries: A panel unit root and panel cointegration analysis, Journal of Economics and Finance, no. 37, pp.424–441.

Nyamongoa, E.M., Misati, R.N., Kipyegon, L., Ndirangu, L. (2012) Remittances, financial development and economic growth in Africa, Journal of Economics and Business, no.62, pp.240– 260.

Pesaran, M.M., Shin, Y. (1995) Autoregressive distributed lag modelling approach to cointegration analysis, DAE Working Paper Series No.9514.

Pesaran M.H., Pesaran B. (1997) Working with microfit 4.0. Camfit Data Ltf.: Cambridge.

Pesaran, M.H., Shin, Y., Smith, R. (2001) Bounds testing approaches to the analysis of level relationships, Journal of Applied Econometrics, no.16, pp.289-326.

Phillips, P. C. B., & Perron, P. (1988) Testing for unit roots in time series regression, Biometrika, no.75, pp.335–346.

Pradhan, G., Upadhyay, M., Upadhyaya, K. (2008) Remittances and economic growth in developing countries, The European Journal of Development Research, no. 20(3), pp.497–506.

Ramey, G., Ramey, V.A. (1995) Cross-country evidence on the link between volatility and growth, American Economic Review, no. 85 (5), pp. 1138–1151.

Ravinesh, K., Vu, H.T.T.V. (2014) Exploring the nexus between ICT, remittances and economic growth: A study of Vietnam, Journal of Southeast Asian Economies, no. 31(1), pp.104-120.

Salahuddin, M., Gow, J. (2015) The Relationship between economic growth and remittances in the presence of cross-sectional dependence, The Journal of Developing Areas, no.49(1), pp.207-221.

Senbeta, A. (2013) Remittances and the sources of growth, Applied Economics Letters, no.20, pp.572–580.

Woodruff, C.M., Zenteno, R. (2004) Remittances and micro enterprises in Mexico, Graduate School of International Relations and Pacific Studies Working Paper.

World Bank (2014) Migration and development brief 23, http://siteresources.worldbank.org/INTPROSPECTS/Resources/334934-1288990760745/MigrationandDevelopmentBrief23.pdf, accessed January 3, 2015.

World Bank (2015) World development indicators, http://data.worldbank.org/data-catalog/world-development-indicators, accessed February 15, 2015.


Full Text: PDF

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.