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THE IMPACT OF IMMIGRANT REMITTANCES ON DEVELOPMENT IN TERMS OF SUSTAINABILITY: A PANEL DATA APPLICATION

Year 2023, Volume: 11 Issue: Özel Sayı, 213 - 228, 20.10.2023
https://doi.org/10.52122/nisantasisbd.1346284

Abstract

İktisat literatüründe son yıllarda sıklıkla kullanılan sürdürülebilir kalkınmaya ulaşmanın birçok yolu olmakla birlikte, göçmen para transferlerinin de sürdürülebilir kalkınmaya katkı sağladığına dair çeşitli araştırmalar yapılmıştır. Teknolojinin ve diğer imkanların gelişmesiyle hareketliliği artan ve yabancı ülkelerde çalışan bireyler, kazançlarını kendi ülkelerine aktarmaktadır. Bu ise, kalkınmanın parasal boyutunun sağlanmasında önemli bir gelir kaynağı olarak kabul edilmektedir. Bu yönüyle, göçmen para transferleri özellikle gelişmekte olan ülkeler için önemli bir yatırım kaynağı olarak görülmektedir. Ayrıca gelişmiş ülkelerde kazanılan gelirin göçmenin anavatanına (kaynak ülke) transfer edilmesi de göçmenin ülkesiyle ilişkisi hakkında ipucu vermektedir. Dolayısıyla, transferler ülkeler için hem bir gelir kaynağı hem de göçmen ve kaynak ülkesi arasında kurulan bağın gücünün göstergesi durumundadır. Bu çalışmada, en fazla transfer alan gelişmekte olan ülkeler (Bangladeş, Çin, Dominik, Endonezya, Fas, Filipinler, Guatemala, Hindistan, Kolombiya, Meksika, Nepal, Nijerya ve Pakistan) ve Türkiye’ye ait panel veri setine ekonometrik analiz uygulanmıştır. Çalışmada bağımlı değişken olarak insani gelişmişlik endeksi (HDI), bağımsız değişken olarak göçmen para transferleri ve açıklayıcı değişken olarak ekonomik büyüme oranı kullanılmıştır. 2005-2021 dönemine ait verilere uygulanan panel veri analizi sonuçlarına göre; göçmen para transferlerinde görülen %1’lik bir artış kalkınma üzerinde %0,07 düzeyinde bir artış sağlamaktadır. Diğer taraftan, ekonomik büyümede görülen bir birimlik artışın kalkınma üzerinde %0,02 düzeyinde bir artış yaratacağı belirlenmiştir.

References

  • Abuiyada, R., (2018). “Traditional Development Theories have failed to Address the Needs of the majority of People at Grassroots Levels with Reference to GAD”, International Journal of Business and Social Science, 9 (9), 115-119.
  • Acosta, P., Calderón, C., Fajnzylber, P., & López, H., (2006). “Remittances and development in Latin America”, World Economy, 29(7), 957-987.
  • Adams Jr, R.H., (2011). “Evaluating the economic impact of international remittances on developing countries using household surveys: A literature review”, Journal of Development Studies, 47 (6), 809-828.
  • Asteriou, D., Pilbeam, K., & Pratiwi, C.E., (2021). “Public debt and economic growth: panel data evidence for Asian countries”, Journal of Economics and Finance, 45, 270-287.
  • Baltagi, B.H., Feng, Q., & Kao, C., (2012). “A Lagrange Multiplier test for cross-sectional dependence in a fixed effects panel data model”. Journal of Econometrics, 170 (1), 164-177.
  • Breusch, T.S., & Pagan, A.R., (1980). “The Lagrange multiplier test and its applications to model specification in econometrics”, The review of economic studies, 47 (1), 239-253.
  • Butsch, C., (2020). “Financial engagement of the Indian diaspora in Germany: Remitting to India”, Population, Space and Place, 26 (4), e2290.
  • De Hoyos, R.E., & Sarafidis, V., (2006). “Testing for cross-sectional dependence in panel-data models”, The stata journal, 6 (4), 482-496.
  • De Haas, H., (2005). “International migration, remittances and development: myths and facts”, Third world quarterly, 26 (8), 1269-1284.
  • Genç Y., Gündüz D.U. & Çöpoğlu M., (2019). “Göç ve Kalkınma İlişkisi”, Avrasya Uluslararası Araştırmalar Dergisi, 7 (18), 479-498.
  • Giuliano, P., & Ruiz-Arranz, M., (2009). “Remittances, financial development, and growth”, Journal of development economics, 90 (1), 144-152.
  • Glytsos, N.P., (2002). “The role of migrant remittances in development: Evidence from Mediterranean countries”, International migration, 40 (1), 5-26.
  • IMF (International Monetary Fund). (2009). International Transactions in Remittances: Guide for Compilers and Users (RCG). International Monetary Fund.
  • Lucas, R.E., & Stark, O., (1985). “Motivations to remit: Evidence from Botswana”, Journal of political Economy, 93 (5), 901-918.
  • Karadaş, H. A. (2020a). Effect of Labor Force Education Level on Growth: An Analysis on Fragile Five Countries. A. Umut (Ed.), Contemporary Approaches in The Field Of Economy, Finance and Management içerisinde (s.43-58). Nobel Bilimsel Eserler.
  • Karadaş, H. A. (2020b). Seçili N-11 Ülkelerinde İşgücü Eğitim Seviyesinin Ekonomiye Etkisi. N. Balıkçıoğlu (Ed.), Makroekonomik Göstergeler Çerçevesinde N -11 Ülkeleri içerisinde (s.107-138). Orion Kitabevi.
  • Karadaş, H.A. (2021). “Yüksek Eğitim Seviyesine Sahip İşgücü Ekonomiye Katkı Yapar Mı? Gelişmiş Ülkeler Üzerine Bir Analiz”, Kesit Akademi Dergisi, 7 (28), 433-450.
  • Kim, J., (2021). “Financial development and remittances: The role of institutional quality in developing countries”, Economic Analysis and Policy, 72, 386-407.
  • Koçbulut, Ö., & Barış, S., (2016). “Avrupa Birliği Ülkelerinde İhracat ve Doğrudan Yabancı Yatırımların Kadın İstihdamı Üzerindeki Etkisi: Panel Veri Analizi”, Aydın İktisat Fakültesi Dergisi, 1 (2), 22-39.
  • Kurtulmuş, N., (1992). “Gelişmekte olan ülkeler açısından stratejik insan sermayesi kaybı: Beyin gücü”, In Journal of Social Policy Conferences, 37-38, 205-221.
  • Lélé, S.M., (1991). “Sustainable development: a critical review”, World development, 19 (6), 607-621.
  • Li, S., Long, F., & Long, L., (2022). “Resources curse and sustainable development revisited: Evaluating the role of remittances for China”, Resources Policy, 79, 103110.
  • Maimbo, S. M., & Ratha, D. (Eds.). (2005). Remittances: Development impact and future prospects. World Bank Publications, Washington D.C.
  • Nyamongo, E.M., Misati, R.N., Kipyegon, L., & Ndirangu, L., (2012). “Remittances, financial development and economic growth in Africa”,. Journal of economics and business, 64 (3), 240-260.
  • Ofori, I.K., Gbolonyo, E.Y., Dossou, M.A.T., Nkrumah, R.K., & Nkansah, E., (2023). “Towards inclusive growth in Africa: Remittances, and financial development interactive effects and thresholds”, Journal of Multinational Financial Management, 68, 100798.
  • Pesaran, M.H., (2004). “General diagnostic tests for cross sectional dependence in panels”, Empirical Economics, 1-38.
  • Pesaran, M.H., (2007). “A simple panel unit root test in the presence of cross‐section dependence”, Journal of applied econometrics, 22 (2), 265-312.
  • Pesaran, M.H., Shin, Y., and Smith, R.P., (1999). “Pooled mean group estimation of dynamic heterogeneous panels”, Journal of the American statistical Association, 94 (446), 621-634.
  • Ping, H., & Shaohua, M. Z. (2008). Migrant workers’ remittances and rural development in China. Migration and development within and across borders: Research and policy perspectives on internal and international migration, 219-243, https://www.un-ilibrary.org/content/books/9789210021821c010/read date of access: 7 May 2023.
  • Ratha, D. (2003). Workers’ remittances: an important and stable source of external development finance. Global development finance.
  • Ratha, D., & Mohapatra, S., (2007). “Increasing the macroeconomic impact of remittances on development”, World Bank, 3 (1), 178-192.
  • Şengönül, A., Karadaş, H.A., and Koşaroğlu, Ş.M., (2018). “Turizme Dayalı Büyüme Hipotezinin OECD Üyesi Olan Akdeniz Ülkeleri için Analizi”, Journal of International Social Research, 11 (60).
  • Slaton, C. (2016). International Remittances: Background, Verification Proposals, and Money Laundering Issues. New York: Nova Science Publishers, 332.04246 SLA (96693).
  • Sriskandarajah, D. (2005). Migration and development: A paper prepared for the Policy Analysis and Research Programme of the Global Commission on International Migration. Global Commission on International Migration, https://www.iom.int/sites/g/files/tmzbdl486/files/jahia/webdav/site/myjahiasite/shared/shared/mainsite/policy_and_research/gcim/tp/TP4.pdf, date of access: 6 May 2023
  • Toxopeus, H. S., & Lensink, R. (2008). Remittances and financial inclusion in development (pp. 236-263). Palgrave Macmillan UK.
  • UN (United Nations) (2015). Transforming our world: The 2030 Agenda for Sustainable Development. https://sustainabledevelopment.un.org/post2015/transformingourworld/publication
  • Yang, D. (2011). “Migrant remittances”. Journal of Economic perspectives, 25 (3), 129-152.
  • Yumuşak, İ. G., & Tuna, Y., (2002). “Kalkınmışlık Göstergesi Olarak Beşeri Kalkınma İndeksi ve Türkiye Üzerine Bir Değerlendirme”, İstanbul Üniversitesi İktisat Fakültesi Mecmuası, 52 (1), 1-26
  • Zienkowski L., (1971). “Contents And Measurement Of Socioeconomic Development”, Review of Income and Wealth, International Association for Research in Income and Wealth, 17 (4), 379-382.

THE IMPACT OF IMMIGRANT REMITTANCES ON DEVELOPMENT IN TERMS OF SUSTAINABILITY: A PANEL DATA APPLICATION

Year 2023, Volume: 11 Issue: Özel Sayı, 213 - 228, 20.10.2023
https://doi.org/10.52122/nisantasisbd.1346284

Abstract

While there are many ways to achieve sustainable development, which has been frequently used in economics literature in recent years, various studies have been conducted that show that remittances also contribute to sustainable development. Individuals, whose mobility has increased with the development of technology and other opportunities transfer their earnings to their own countries. This is accepted as an important source of income in providing the monetary dimension of development. In this respect, remittances are seen as an important source of investment, especially for developing countries. In addition, transferring the income earned in developed countries to the immigrant's home country (source country) also gives a clue about the relationship between the immigrant and his country. Therefore, remittances are both a source of income for countries and an indicator of the strength of the bond established between the immigrant and the source country. In this study, econometric analysis was conducted to the panel data set of the developing countries (Bangladesh, China, Dominican, Indonesia, Morocco, Philippines, Guatemala, India, Colombia, Mexico, Nepal, Nigeria, and Pakistan) that received the most transfers and Turkey. In the study, human development index (HDI) was used as a dependent variable, remittances as an independent variable, and economic growth rate as an explanatory variable. According to the results of the panel data analysis applied to the data of the 2005-2021 period; A 1% increase in remittances provides a 0.07% increase in development. On the other hand, it has been determined that a one-unit increase in economic growth will create an increase of 0.02% on development

References

  • Abuiyada, R., (2018). “Traditional Development Theories have failed to Address the Needs of the majority of People at Grassroots Levels with Reference to GAD”, International Journal of Business and Social Science, 9 (9), 115-119.
  • Acosta, P., Calderón, C., Fajnzylber, P., & López, H., (2006). “Remittances and development in Latin America”, World Economy, 29(7), 957-987.
  • Adams Jr, R.H., (2011). “Evaluating the economic impact of international remittances on developing countries using household surveys: A literature review”, Journal of Development Studies, 47 (6), 809-828.
  • Asteriou, D., Pilbeam, K., & Pratiwi, C.E., (2021). “Public debt and economic growth: panel data evidence for Asian countries”, Journal of Economics and Finance, 45, 270-287.
  • Baltagi, B.H., Feng, Q., & Kao, C., (2012). “A Lagrange Multiplier test for cross-sectional dependence in a fixed effects panel data model”. Journal of Econometrics, 170 (1), 164-177.
  • Breusch, T.S., & Pagan, A.R., (1980). “The Lagrange multiplier test and its applications to model specification in econometrics”, The review of economic studies, 47 (1), 239-253.
  • Butsch, C., (2020). “Financial engagement of the Indian diaspora in Germany: Remitting to India”, Population, Space and Place, 26 (4), e2290.
  • De Hoyos, R.E., & Sarafidis, V., (2006). “Testing for cross-sectional dependence in panel-data models”, The stata journal, 6 (4), 482-496.
  • De Haas, H., (2005). “International migration, remittances and development: myths and facts”, Third world quarterly, 26 (8), 1269-1284.
  • Genç Y., Gündüz D.U. & Çöpoğlu M., (2019). “Göç ve Kalkınma İlişkisi”, Avrasya Uluslararası Araştırmalar Dergisi, 7 (18), 479-498.
  • Giuliano, P., & Ruiz-Arranz, M., (2009). “Remittances, financial development, and growth”, Journal of development economics, 90 (1), 144-152.
  • Glytsos, N.P., (2002). “The role of migrant remittances in development: Evidence from Mediterranean countries”, International migration, 40 (1), 5-26.
  • IMF (International Monetary Fund). (2009). International Transactions in Remittances: Guide for Compilers and Users (RCG). International Monetary Fund.
  • Lucas, R.E., & Stark, O., (1985). “Motivations to remit: Evidence from Botswana”, Journal of political Economy, 93 (5), 901-918.
  • Karadaş, H. A. (2020a). Effect of Labor Force Education Level on Growth: An Analysis on Fragile Five Countries. A. Umut (Ed.), Contemporary Approaches in The Field Of Economy, Finance and Management içerisinde (s.43-58). Nobel Bilimsel Eserler.
  • Karadaş, H. A. (2020b). Seçili N-11 Ülkelerinde İşgücü Eğitim Seviyesinin Ekonomiye Etkisi. N. Balıkçıoğlu (Ed.), Makroekonomik Göstergeler Çerçevesinde N -11 Ülkeleri içerisinde (s.107-138). Orion Kitabevi.
  • Karadaş, H.A. (2021). “Yüksek Eğitim Seviyesine Sahip İşgücü Ekonomiye Katkı Yapar Mı? Gelişmiş Ülkeler Üzerine Bir Analiz”, Kesit Akademi Dergisi, 7 (28), 433-450.
  • Kim, J., (2021). “Financial development and remittances: The role of institutional quality in developing countries”, Economic Analysis and Policy, 72, 386-407.
  • Koçbulut, Ö., & Barış, S., (2016). “Avrupa Birliği Ülkelerinde İhracat ve Doğrudan Yabancı Yatırımların Kadın İstihdamı Üzerindeki Etkisi: Panel Veri Analizi”, Aydın İktisat Fakültesi Dergisi, 1 (2), 22-39.
  • Kurtulmuş, N., (1992). “Gelişmekte olan ülkeler açısından stratejik insan sermayesi kaybı: Beyin gücü”, In Journal of Social Policy Conferences, 37-38, 205-221.
  • Lélé, S.M., (1991). “Sustainable development: a critical review”, World development, 19 (6), 607-621.
  • Li, S., Long, F., & Long, L., (2022). “Resources curse and sustainable development revisited: Evaluating the role of remittances for China”, Resources Policy, 79, 103110.
  • Maimbo, S. M., & Ratha, D. (Eds.). (2005). Remittances: Development impact and future prospects. World Bank Publications, Washington D.C.
  • Nyamongo, E.M., Misati, R.N., Kipyegon, L., & Ndirangu, L., (2012). “Remittances, financial development and economic growth in Africa”,. Journal of economics and business, 64 (3), 240-260.
  • Ofori, I.K., Gbolonyo, E.Y., Dossou, M.A.T., Nkrumah, R.K., & Nkansah, E., (2023). “Towards inclusive growth in Africa: Remittances, and financial development interactive effects and thresholds”, Journal of Multinational Financial Management, 68, 100798.
  • Pesaran, M.H., (2004). “General diagnostic tests for cross sectional dependence in panels”, Empirical Economics, 1-38.
  • Pesaran, M.H., (2007). “A simple panel unit root test in the presence of cross‐section dependence”, Journal of applied econometrics, 22 (2), 265-312.
  • Pesaran, M.H., Shin, Y., and Smith, R.P., (1999). “Pooled mean group estimation of dynamic heterogeneous panels”, Journal of the American statistical Association, 94 (446), 621-634.
  • Ping, H., & Shaohua, M. Z. (2008). Migrant workers’ remittances and rural development in China. Migration and development within and across borders: Research and policy perspectives on internal and international migration, 219-243, https://www.un-ilibrary.org/content/books/9789210021821c010/read date of access: 7 May 2023.
  • Ratha, D. (2003). Workers’ remittances: an important and stable source of external development finance. Global development finance.
  • Ratha, D., & Mohapatra, S., (2007). “Increasing the macroeconomic impact of remittances on development”, World Bank, 3 (1), 178-192.
  • Şengönül, A., Karadaş, H.A., and Koşaroğlu, Ş.M., (2018). “Turizme Dayalı Büyüme Hipotezinin OECD Üyesi Olan Akdeniz Ülkeleri için Analizi”, Journal of International Social Research, 11 (60).
  • Slaton, C. (2016). International Remittances: Background, Verification Proposals, and Money Laundering Issues. New York: Nova Science Publishers, 332.04246 SLA (96693).
  • Sriskandarajah, D. (2005). Migration and development: A paper prepared for the Policy Analysis and Research Programme of the Global Commission on International Migration. Global Commission on International Migration, https://www.iom.int/sites/g/files/tmzbdl486/files/jahia/webdav/site/myjahiasite/shared/shared/mainsite/policy_and_research/gcim/tp/TP4.pdf, date of access: 6 May 2023
  • Toxopeus, H. S., & Lensink, R. (2008). Remittances and financial inclusion in development (pp. 236-263). Palgrave Macmillan UK.
  • UN (United Nations) (2015). Transforming our world: The 2030 Agenda for Sustainable Development. https://sustainabledevelopment.un.org/post2015/transformingourworld/publication
  • Yang, D. (2011). “Migrant remittances”. Journal of Economic perspectives, 25 (3), 129-152.
  • Yumuşak, İ. G., & Tuna, Y., (2002). “Kalkınmışlık Göstergesi Olarak Beşeri Kalkınma İndeksi ve Türkiye Üzerine Bir Değerlendirme”, İstanbul Üniversitesi İktisat Fakültesi Mecmuası, 52 (1), 1-26
  • Zienkowski L., (1971). “Contents And Measurement Of Socioeconomic Development”, Review of Income and Wealth, International Association for Research in Income and Wealth, 17 (4), 379-382.
There are 39 citations in total.

Details

Primary Language English
Subjects Human Geography (Other)
Journal Section Research Article
Authors

Neslihan Arslan 0000-0003-3533-8733

Hacı Ahmet Karadaş 0000-0002-3088-1107

Publication Date October 20, 2023
Published in Issue Year 2023 Volume: 11 Issue: Özel Sayı

Cite

APA Arslan, N., & Karadaş, H. A. (2023). THE IMPACT OF IMMIGRANT REMITTANCES ON DEVELOPMENT IN TERMS OF SUSTAINABILITY: A PANEL DATA APPLICATION. Nişantaşı Üniversitesi Sosyal Bilimler Dergisi, 11(Özel Sayı), 213-228. https://doi.org/10.52122/nisantasisbd.1346284

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