Remittances and output growth volatility in developing countries: Does financial development dampen or magnify the effects?

The paper empirically investigated the relationship between remittance flows and output growth volatility for an extensive sample predominated by emerging and developing countries. Following this broad treatment, it goes further to estimate the extent to which the degree of financial development (FD...

Full description

Saved in:
Bibliographic Details
Published in:Empirical economics 2019-03, Vol.56 (3), p.865-882
Main Authors: Adeniyi, Oluwatosin, Ajide, Kazeem, Raheem, Ibrahim D.
Format: Article
Language:English
Subjects:
Developing countries
Econometrics
Economic models
Economic theory
Economic Theory/Quantitative Economics/Mathematical Methods
Economics
Economics and Finance
Finance
Generalized method of moments
Insurance
LDCs
Management
Private sector
Remittances
Statistics for Business
Volatility
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
cited_by cdi_FETCH-LOGICAL-c381t-8fb5337e397430c6372faa2e48250bdf2c079e52cc3027df4ecffa36e953351b3
cites cdi_FETCH-LOGICAL-c381t-8fb5337e397430c6372faa2e48250bdf2c079e52cc3027df4ecffa36e953351b3
container_end_page 882
container_issue 3
container_start_page 865
container_title Empirical economics
container_volume 56
creator Adeniyi, Oluwatosin
Ajide, Kazeem
Raheem, Ibrahim D.
description The paper empirically investigated the relationship between remittance flows and output growth volatility for an extensive sample predominated by emerging and developing countries. Following this broad treatment, it goes further to estimate the extent to which the degree of financial development (FD) impacts on the remittances–growth volatility nexus. This novelty distinguishes the work from previous studies. Using the system-generalized method of moments estimator, which corrects for endogenity and omitted variable concerns, on data spanning the period 1996–2012 for a total of 71 countries some interesting findings ensued. One, both remittances and FD had growth volatility dampening effects. Two, the interaction between proxies for FD and remittances produced mixed results. Three, when volatility of FD is accounted for, the interactive term had mixed results. For instance, banking sector credit produces positive and insignificant coefficients, while private sector produced significant and negative coefficients. Summarily putting these results in other words, the counter-cyclicality of remittances was established, while the complementary dampening effect of financial development is dependent upon its measure. On the basis of the foregoing, a few related policy lessons are documented to conclude the paper.
doi_str_mv 10.1007/s00181-017-1375-6
format article
fullrecord <record><control><sourceid>proquest_cross</sourceid><recordid>TN_cdi_proquest_journals_1980856947</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><sourcerecordid>1980856947</sourcerecordid><originalsourceid>FETCH-LOGICAL-c381t-8fb5337e397430c6372faa2e48250bdf2c079e52cc3027df4ecffa36e953351b3</originalsourceid><addsrcrecordid>eNp1kM1LwzAYh4MoOKd_gLeA52o-2qb1IjI_YSCInkOWvtky2qQm6WT4z9sxBS-e3svz_F54EDqn5JISIq4iIbSiGaEio1wUWXmAJjTnRVbVjB6iCeFCZIJzdoxOYlwTQnhV5BP09QqdTUk5DREr12A_pH5IeBn8Z1rhjW9Vsq1NW2wdbmADre-tW2LtB5eChXiN7_yoGuvGDavaX6gDl3Cjuh4c9gF3aums2eK0AgzGgE7x5hQdGdVGOPu5U_T-cP82e8rmL4_Ps9t5pnlFU1aZRcG5AF6LnBNdcsGMUgzyihVk0RimiaihYFpzwkRjctDGKF5CPWoFXfAputjv9sF_DBCTXPshuPGlpHVFqqKsczFSdE_p4GMMYGQfbKfCVlIid43lvrEcG8tdY1mODts7cWTdEsKf5X-lb_5ngUU</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>1980856947</pqid></control><display><type>article</type><title>Remittances and output growth volatility in developing countries: Does financial development dampen or magnify the effects?</title><source>EBSCOhost Business Source Ultimate</source><source>International Bibliography of the Social Sciences (IBSS)</source><source>EBSCOhost Econlit with Full Text</source><source>ABI/INFORM Global</source><source>Springer Link</source><creator>Adeniyi, Oluwatosin ; Ajide, Kazeem ; Raheem, Ibrahim D.</creator><creatorcontrib>Adeniyi, Oluwatosin ; Ajide, Kazeem ; Raheem, Ibrahim D.</creatorcontrib><description>The paper empirically investigated the relationship between remittance flows and output growth volatility for an extensive sample predominated by emerging and developing countries. Following this broad treatment, it goes further to estimate the extent to which the degree of financial development (FD) impacts on the remittances–growth volatility nexus. This novelty distinguishes the work from previous studies. Using the system-generalized method of moments estimator, which corrects for endogenity and omitted variable concerns, on data spanning the period 1996–2012 for a total of 71 countries some interesting findings ensued. One, both remittances and FD had growth volatility dampening effects. Two, the interaction between proxies for FD and remittances produced mixed results. Three, when volatility of FD is accounted for, the interactive term had mixed results. For instance, banking sector credit produces positive and insignificant coefficients, while private sector produced significant and negative coefficients. Summarily putting these results in other words, the counter-cyclicality of remittances was established, while the complementary dampening effect of financial development is dependent upon its measure. On the basis of the foregoing, a few related policy lessons are documented to conclude the paper.</description><identifier>ISSN: 0377-7332</identifier><identifier>EISSN: 1435-8921</identifier><identifier>DOI: 10.1007/s00181-017-1375-6</identifier><language>eng</language><publisher>Berlin/Heidelberg: Springer Berlin Heidelberg</publisher><subject>Developing countries ; Econometrics ; Economic models ; Economic theory ; Economic Theory/Quantitative Economics/Mathematical Methods ; Economics ; Economics and Finance ; Finance ; Generalized method of moments ; Insurance ; LDCs ; Management ; Private sector ; Remittances ; Statistics for Business ; Volatility</subject><ispartof>Empirical economics, 2019-03, Vol.56 (3), p.865-882</ispartof><rights>Springer-Verlag GmbH Germany, part of Springer Nature 2017</rights><rights>Empirical Economics is a copyright of Springer, (2017). All Rights Reserved.</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c381t-8fb5337e397430c6372faa2e48250bdf2c079e52cc3027df4ecffa36e953351b3</citedby><cites>FETCH-LOGICAL-c381t-8fb5337e397430c6372faa2e48250bdf2c079e52cc3027df4ecffa36e953351b3</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.proquest.com/docview/1980856947/fulltextPDF?pq-origsite=primo$$EPDF$$P50$$Gproquest$$H</linktopdf><linktohtml>$$Uhttps://www.proquest.com/docview/1980856947?pq-origsite=primo$$EHTML$$P50$$Gproquest$$H</linktohtml><link.rule.ids>315,786,790,11715,12874,27957,27958,33258,36095,44398,75252</link.rule.ids></links><search><creatorcontrib>Adeniyi, Oluwatosin</creatorcontrib><creatorcontrib>Ajide, Kazeem</creatorcontrib><creatorcontrib>Raheem, Ibrahim D.</creatorcontrib><title>Remittances and output growth volatility in developing countries: Does financial development dampen or magnify the effects?</title><title>Empirical economics</title><addtitle>Empir Econ</addtitle><description>The paper empirically investigated the relationship between remittance flows and output growth volatility for an extensive sample predominated by emerging and developing countries. Following this broad treatment, it goes further to estimate the extent to which the degree of financial development (FD) impacts on the remittances–growth volatility nexus. This novelty distinguishes the work from previous studies. Using the system-generalized method of moments estimator, which corrects for endogenity and omitted variable concerns, on data spanning the period 1996–2012 for a total of 71 countries some interesting findings ensued. One, both remittances and FD had growth volatility dampening effects. Two, the interaction between proxies for FD and remittances produced mixed results. Three, when volatility of FD is accounted for, the interactive term had mixed results. For instance, banking sector credit produces positive and insignificant coefficients, while private sector produced significant and negative coefficients. Summarily putting these results in other words, the counter-cyclicality of remittances was established, while the complementary dampening effect of financial development is dependent upon its measure. On the basis of the foregoing, a few related policy lessons are documented to conclude the paper.</description><subject>Developing countries</subject><subject>Econometrics</subject><subject>Economic models</subject><subject>Economic theory</subject><subject>Economic Theory/Quantitative Economics/Mathematical Methods</subject><subject>Economics</subject><subject>Economics and Finance</subject><subject>Finance</subject><subject>Generalized method of moments</subject><subject>Insurance</subject><subject>LDCs</subject><subject>Management</subject><subject>Private sector</subject><subject>Remittances</subject><subject>Statistics for Business</subject><subject>Volatility</subject><issn>0377-7332</issn><issn>1435-8921</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2019</creationdate><recordtype>article</recordtype><sourceid>8BJ</sourceid><sourceid>M0C</sourceid><recordid>eNp1kM1LwzAYh4MoOKd_gLeA52o-2qb1IjI_YSCInkOWvtky2qQm6WT4z9sxBS-e3svz_F54EDqn5JISIq4iIbSiGaEio1wUWXmAJjTnRVbVjB6iCeFCZIJzdoxOYlwTQnhV5BP09QqdTUk5DREr12A_pH5IeBn8Z1rhjW9Vsq1NW2wdbmADre-tW2LtB5eChXiN7_yoGuvGDavaX6gDl3Cjuh4c9gF3aums2eK0AgzGgE7x5hQdGdVGOPu5U_T-cP82e8rmL4_Ps9t5pnlFU1aZRcG5AF6LnBNdcsGMUgzyihVk0RimiaihYFpzwkRjctDGKF5CPWoFXfAputjv9sF_DBCTXPshuPGlpHVFqqKsczFSdE_p4GMMYGQfbKfCVlIid43lvrEcG8tdY1mODts7cWTdEsKf5X-lb_5ngUU</recordid><startdate>20190301</startdate><enddate>20190301</enddate><creator>Adeniyi, Oluwatosin</creator><creator>Ajide, Kazeem</creator><creator>Raheem, Ibrahim D.</creator><general>Springer Berlin Heidelberg</general><general>Springer Nature B.V</general><scope>AAYXX</scope><scope>CITATION</scope><scope>3V.</scope><scope>7WY</scope><scope>7WZ</scope><scope>7XB</scope><scope>87Z</scope><scope>8AO</scope><scope>8BJ</scope><scope>8FK</scope><scope>8FL</scope><scope>ABUWG</scope><scope>AFKRA</scope><scope>BENPR</scope><scope>BEZIV</scope><scope>CCPQU</scope><scope>DWQXO</scope><scope>FQK</scope><scope>FRNLG</scope><scope>F~G</scope><scope>JBE</scope><scope>K60</scope><scope>K6~</scope><scope>K8~</scope><scope>L.-</scope><scope>M0C</scope><scope>PQBIZ</scope><scope>PQBZA</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>PRINS</scope><scope>Q9U</scope></search><sort><creationdate>20190301</creationdate><title>Remittances and output growth volatility in developing countries: Does financial development dampen or magnify the effects?</title><author>Adeniyi, Oluwatosin ; Ajide, Kazeem ; Raheem, Ibrahim D.</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c381t-8fb5337e397430c6372faa2e48250bdf2c079e52cc3027df4ecffa36e953351b3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2019</creationdate><topic>Developing countries</topic><topic>Econometrics</topic><topic>Economic models</topic><topic>Economic theory</topic><topic>Economic Theory/Quantitative Economics/Mathematical Methods</topic><topic>Economics</topic><topic>Economics and Finance</topic><topic>Finance</topic><topic>Generalized method of moments</topic><topic>Insurance</topic><topic>LDCs</topic><topic>Management</topic><topic>Private sector</topic><topic>Remittances</topic><topic>Statistics for Business</topic><topic>Volatility</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Adeniyi, Oluwatosin</creatorcontrib><creatorcontrib>Ajide, Kazeem</creatorcontrib><creatorcontrib>Raheem, Ibrahim D.</creatorcontrib><collection>CrossRef</collection><collection>ProQuest Central (Corporate)</collection><collection>ABI/INFORM Collection</collection><collection>ABI/INFORM Global (PDF only)</collection><collection>ProQuest Central (purchase pre-March 2016)</collection><collection>ABI/INFORM Global (Alumni Edition)</collection><collection>ProQuest Pharma Collection</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>ProQuest Central (Alumni) (purchase pre-March 2016)</collection><collection>ABI/INFORM Collection (Alumni Edition)</collection><collection>ProQuest Central (Alumni)</collection><collection>ProQuest Central UK/Ireland</collection><collection>ProQuest Central</collection><collection>Business Premium Collection</collection><collection>ProQuest One Community College</collection><collection>ProQuest Central Korea</collection><collection>International Bibliography of the Social Sciences</collection><collection>Business Premium Collection (Alumni)</collection><collection>ABI/INFORM Global (Corporate)</collection><collection>International Bibliography of the Social Sciences</collection><collection>ProQuest Business Collection (Alumni Edition)</collection><collection>ProQuest Business Collection</collection><collection>DELNET Management Collection</collection><collection>ABI/INFORM Professional Advanced</collection><collection>ABI/INFORM Global</collection><collection>One Business (ProQuest)</collection><collection>ProQuest One Business (Alumni)</collection><collection>ProQuest One Academic Eastern Edition (DO NOT USE)</collection><collection>ProQuest One Academic</collection><collection>ProQuest One Academic UKI Edition</collection><collection>ProQuest Central China</collection><collection>ProQuest Central Basic</collection><jtitle>Empirical economics</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Adeniyi, Oluwatosin</au><au>Ajide, Kazeem</au><au>Raheem, Ibrahim D.</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Remittances and output growth volatility in developing countries: Does financial development dampen or magnify the effects?</atitle><jtitle>Empirical economics</jtitle><stitle>Empir Econ</stitle><date>2019-03-01</date><risdate>2019</risdate><volume>56</volume><issue>3</issue><spage>865</spage><epage>882</epage><pages>865-882</pages><issn>0377-7332</issn><eissn>1435-8921</eissn><abstract>The paper empirically investigated the relationship between remittance flows and output growth volatility for an extensive sample predominated by emerging and developing countries. Following this broad treatment, it goes further to estimate the extent to which the degree of financial development (FD) impacts on the remittances–growth volatility nexus. This novelty distinguishes the work from previous studies. Using the system-generalized method of moments estimator, which corrects for endogenity and omitted variable concerns, on data spanning the period 1996–2012 for a total of 71 countries some interesting findings ensued. One, both remittances and FD had growth volatility dampening effects. Two, the interaction between proxies for FD and remittances produced mixed results. Three, when volatility of FD is accounted for, the interactive term had mixed results. For instance, banking sector credit produces positive and insignificant coefficients, while private sector produced significant and negative coefficients. Summarily putting these results in other words, the counter-cyclicality of remittances was established, while the complementary dampening effect of financial development is dependent upon its measure. On the basis of the foregoing, a few related policy lessons are documented to conclude the paper.</abstract><cop>Berlin/Heidelberg</cop><pub>Springer Berlin Heidelberg</pub><doi>10.1007/s00181-017-1375-6</doi><tpages>18</tpages></addata></record>
fulltext fulltext
identifier ISSN: 0377-7332
ispartof Empirical economics, 2019-03, Vol.56 (3), p.865-882
issn 0377-7332
1435-8921
language eng
recordid cdi_proquest_journals_1980856947
source EBSCOhost Business Source Ultimate; International Bibliography of the Social Sciences (IBSS); EBSCOhost Econlit with Full Text; ABI/INFORM Global; Springer Link
subjects Developing countries
Econometrics
Economic models
Economic theory
Economic Theory/Quantitative Economics/Mathematical Methods
Economics
Economics and Finance
Finance
Generalized method of moments
Insurance
LDCs
Management
Private sector
Remittances
Statistics for Business
Volatility
title Remittances and output growth volatility in developing countries: Does financial development dampen or magnify the effects?
url http://sfxeu10.hosted.exlibrisgroup.com/loughborough?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2024-09-21T02%3A36%3A22IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-proquest_cross&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Remittances%20and%20output%20growth%20volatility%20in%20developing%20countries:%20Does%20financial%20development%20dampen%20or%20magnify%20the%20effects?&rft.jtitle=Empirical%20economics&rft.au=Adeniyi,%20Oluwatosin&rft.date=2019-03-01&rft.volume=56&rft.issue=3&rft.spage=865&rft.epage=882&rft.pages=865-882&rft.issn=0377-7332&rft.eissn=1435-8921&rft_id=info:doi/10.1007/s00181-017-1375-6&rft_dat=%3Cproquest_cross%3E1980856947%3C/proquest_cross%3E%3Cgrp_id%3Ecdi_FETCH-LOGICAL-c381t-8fb5337e397430c6372faa2e48250bdf2c079e52cc3027df4ecffa36e953351b3%3C/grp_id%3E%3Coa%3E%3C/oa%3E%3Curl%3E%3C/url%3E&rft_id=info:oai/&rft_pqid=1980856947&rft_id=info:pmid/&rfr_iscdi=true