Workers’ Remittances in Yemen: Macroeconomic Determinants and Impact on Economic Growth
This study examines 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 to data covering the period from 1990 to 2014. According to the model of...
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| Format: | Article |
| Language: | English |
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University of Djelfa
2021-09-01
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| Series: | مجلة بحوث الادارة والاقتصاد |
| Subjects: | |
| Online Access: | https://mer-j.com/merj/index.php/merj/article/view/157 |
| _version_ | 1797226786803679232 |
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| author | Essa A. Alhannom Ghaleb S. Mushabeb |
| author_facet | Essa A. Alhannom Ghaleb S. Mushabeb |
| author_sort | Essa A. Alhannom |
| collection | DOAJ |
| description |
This study examines 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 to 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. In the long run, migrant stock and income levels at the host countries positively and strongly influence the remittance level, with a feeble impact on domestic inflation rates. The effect of the home country's income seems positive but insignificant in explaining the behaviour of remittances level. The economic growth model 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, considering the increasing potential 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.
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| first_indexed | 2024-04-24T14:30:27Z |
| format | Article |
| id | doaj.art-d607eb00a4c041b4a6be3523d2bb083b |
| institution | Directory Open Access Journal |
| issn | 2676-184X 2710-8856 |
| language | English |
| last_indexed | 2024-04-24T14:30:27Z |
| publishDate | 2021-09-01 |
| publisher | University of Djelfa |
| record_format | Article |
| series | مجلة بحوث الادارة والاقتصاد |
| spelling | doaj.art-d607eb00a4c041b4a6be3523d2bb083b2024-04-03T03:24:36ZengUniversity of Djelfaمجلة بحوث الادارة والاقتصاد2676-184X2710-88562021-09-013210.48100/merj.2021.157157Workers’ Remittances in Yemen: Macroeconomic Determinants and Impact on Economic GrowthEssa A. Alhannom0Ghaleb S. Mushabeb 1Faculty of Administrative Sciences, Ibb University (Yemen)Faculty of Administrative Sciences, Ibb University (Yemen) This study examines 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 to 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. In the long run, migrant stock and income levels at the host countries positively and strongly influence the remittance level, with a feeble impact on domestic inflation rates. The effect of the home country's income seems positive but insignificant in explaining the behaviour of remittances level. The economic growth model 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, considering the increasing potential 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. https://mer-j.com/merj/index.php/merj/article/view/157RemittancesEconomic GrowthTime Series Analysis |
| spellingShingle | Essa A. Alhannom Ghaleb S. Mushabeb Workers’ Remittances in Yemen: Macroeconomic Determinants and Impact on Economic Growth مجلة بحوث الادارة والاقتصاد Remittances Economic Growth Time Series Analysis |
| title | Workers’ Remittances in Yemen: Macroeconomic Determinants and Impact on Economic Growth |
| title_full | Workers’ Remittances in Yemen: Macroeconomic Determinants and Impact on Economic Growth |
| title_fullStr | Workers’ Remittances in Yemen: Macroeconomic Determinants and Impact on Economic Growth |
| title_full_unstemmed | Workers’ Remittances in Yemen: Macroeconomic Determinants and Impact on Economic Growth |
| title_short | Workers’ Remittances in Yemen: Macroeconomic Determinants and Impact on Economic Growth |
| title_sort | workers remittances in yemen macroeconomic determinants and impact on economic growth |
| topic | Remittances Economic Growth Time Series Analysis |
| url | https://mer-j.com/merj/index.php/merj/article/view/157 |
| work_keys_str_mv | AT essaaalhannom workersremittancesinyemenmacroeconomicdeterminantsandimpactoneconomicgrowth AT ghalebsmushabeb workersremittancesinyemenmacroeconomicdeterminantsandimpactoneconomicgrowth |