The Role of Financial Development and Institutional Quality in Remittance-Growth Nexus in Asia

Workers' remittances represent up to 47 percent of gross domestic product in some Asian countries. Also, workers' the region were estimated reach $256 billion out $483 received by developing However, growth effect remittance Asia has, over years, remained an open empirical question. To this end, study examines impact and its interactive effects with financial development institutional quality on economic growth. The used a partial Gram-Schmidt orthogonalization procedure, which enable us examine whether marginal depends degree quality. It also Pooled Mean Group (PMG) estimator panel dataset for period 1984-2010 from fifteen (15) remittance-receiving results shows that, impacts positively But, is higher countries improved but relatively weak institutions. According findings percentage point increase per capita leads long-run income 0.103 points. Moreover, rises development. But it declines improvement environment. derivative respect at mean level 9.733. Similarly, evaluated minimum maximum levels are found be 1.355, 32.087 respectively. proportions these derivatives different showed that –12.068. computed take value –15.945 –6.785 This suggests better environment country lesser will remittance. Overall, result work as complements enhancing former act substitutes promoting