Do migrant remittances promote human capital formation? Evidence from 89 developing countries

The few published empirical studies on the effect of migrant remittances on educational attainments are roughly based on cross-sectional microdata from household surveys. This paper applies the generalised method of moments (GMM) estimator on aggregate level data from 1970 to 2010 in five-year inter...

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Main Authors: Ngoma, Abubakar Lawan, Ismail, Normaz Wana
Format: Article
Language:English
Published: Routledge 2013
Online Access:http://psasir.upm.edu.my/id/eprint/28338/1/Do%20migrant%20remittances%20promote%20human%20capital%20formation.pdf
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author Ngoma, Abubakar Lawan
Ismail, Normaz Wana
author_facet Ngoma, Abubakar Lawan
Ismail, Normaz Wana
author_sort Ngoma, Abubakar Lawan
collection UPM
description The few published empirical studies on the effect of migrant remittances on educational attainments are roughly based on cross-sectional microdata from household surveys. This paper applies the generalised method of moments (GMM) estimator on aggregate level data from 1970 to 2010 in five-year intervals to examine the impact of migrant remittances on human capital formation in 89 developing countries. The estimation results show that, on average, an increase in migrant remittance inflows by 1% is associated with a 2% rise in years of schooling at both the secondary and tertiary levels. This suggests that migrant remittances have the potential to relax liquidity constraints and generate spillover effects that facilitate more schooling opportunities in remittance-receiving countries.
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spelling upm.eprints-283382015-12-07T08:39:47Z http://psasir.upm.edu.my/id/eprint/28338/ Do migrant remittances promote human capital formation? Evidence from 89 developing countries Ngoma, Abubakar Lawan Ismail, Normaz Wana The few published empirical studies on the effect of migrant remittances on educational attainments are roughly based on cross-sectional microdata from household surveys. This paper applies the generalised method of moments (GMM) estimator on aggregate level data from 1970 to 2010 in five-year intervals to examine the impact of migrant remittances on human capital formation in 89 developing countries. The estimation results show that, on average, an increase in migrant remittance inflows by 1% is associated with a 2% rise in years of schooling at both the secondary and tertiary levels. This suggests that migrant remittances have the potential to relax liquidity constraints and generate spillover effects that facilitate more schooling opportunities in remittance-receiving countries. Routledge 2013 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/28338/1/Do%20migrant%20remittances%20promote%20human%20capital%20formation.pdf Ngoma, Abubakar Lawan and Ismail, Normaz Wana (2013) Do migrant remittances promote human capital formation? Evidence from 89 developing countries. Migration and Development, 2 (1). pp. 106-116. ISSN 2163-2324; ESSN: 2163-2332 10.1080/21632324.2013.786883
spellingShingle Ngoma, Abubakar Lawan
Ismail, Normaz Wana
Do migrant remittances promote human capital formation? Evidence from 89 developing countries
title Do migrant remittances promote human capital formation? Evidence from 89 developing countries
title_full Do migrant remittances promote human capital formation? Evidence from 89 developing countries
title_fullStr Do migrant remittances promote human capital formation? Evidence from 89 developing countries
title_full_unstemmed Do migrant remittances promote human capital formation? Evidence from 89 developing countries
title_short Do migrant remittances promote human capital formation? Evidence from 89 developing countries
title_sort do migrant remittances promote human capital formation evidence from 89 developing countries
url http://psasir.upm.edu.my/id/eprint/28338/1/Do%20migrant%20remittances%20promote%20human%20capital%20formation.pdf
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