Workers’ remittances in Yemen : macroeconomic determinants and impact on economic growth
Joint Authors
al-Hannum, Isa Ali
Mushabib, Ghalib S.
Source
Management and Economics Research Journal
Issue
Vol. 3, Issue 2 (30 Sep. 2021), pp.41-62, 22 p.
Publisher
Publication Date
2021-09-30
Country of Publication
Algeria
No. of Pages
22
Main Subjects
Abstract EN
This study aims to examine the determinants of workers’ remittances and their impact on economic growth in Yemen.
Autoregressive Distributed Lag (ARDL) bounds test to co-integration and error correction model (ECM) were applied on data covering the period from 1990 to 2014.
According to the model of remittances determinants, workers’ remittances in Yemen respond to the macroeconomic conditions of both the home and host countries.
It is found that, in the long-run, migrant stock and income level at the host countries are positively and strongly influence remittances level, with a feeble impact of domestic inflation rates.
The effect of the home country’s income seems to be positive but insignificant in explaining the behaviour of remittances level.
The model of economic growth suggests that, in the long run, the impact of workers’ remittances appears to be positive and moderate with positive and stronger influences observed for financial development and official development assistance.
Accordingly, it is recommended that a lesser weight should be given to remittances in the strategic planning process, taking into consideration the increasing potentials of the conditions in the neighbouring host countries to be changed.
In addition, using remittances as a means of economic growth can be enhanced by encouraging migrants to direct their savings towards productive investment activities, and via formal channels.
American Psychological Association (APA)
al-Hannum, Isa Ali& Mushabib, Ghalib S.. 2021. Workers’ remittances in Yemen : macroeconomic determinants and impact on economic growth. Management and Economics Research Journal،Vol. 3, no. 2, pp.41-62.
https://search.emarefa.net/detail/BIM-1322944
Modern Language Association (MLA)
al-Hannum, Isa Ali& Mushabib, Ghalib S.. Workers’ remittances in Yemen : macroeconomic determinants and impact on economic growth. Management and Economics Research Journal Vol. 3, no. 2 (2021), pp.41-62.
https://search.emarefa.net/detail/BIM-1322944
American Medical Association (AMA)
al-Hannum, Isa Ali& Mushabib, Ghalib S.. Workers’ remittances in Yemen : macroeconomic determinants and impact on economic growth. Management and Economics Research Journal. 2021. Vol. 3, no. 2, pp.41-62.
https://search.emarefa.net/detail/BIM-1322944
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 59-62
Record ID
BIM-1322944