The sign of worker remittances in growth regressions is heavily disputed in the literature. Comparing two growth regressions with different signs for the remittance variable we show that collinearity with the lagged dependent variable might indicate that collinearity should be investigated...

Remittances may have an impact on economic growth through channels to physical and human capital. We estimate two variants of an open economy model of these two channels consisting of seven equations using the general method of moments with heteroscedasticity and autocorrelation correction...

We derive the central differential equation of the neoclassical growth model for the case of a CES (constant elasticity of substitution) production function with perfect capital movement in terms of the debt/GDP ratio and estimate it in several ways for the United States and in a later step the...

We show empirically that aid given to poor developing countries enhances growth and reduces emigration once several dynamically interacting effects of aid are taken into account in a system of equations. We estimate equations for net immigration flows as a share of the labour force and GDP per...

We propose a method for spatial principal components analysis that has two important advantages over the method that Wartenberg (1985) proposed. The first advantage is that, contrary to Wartenberg's method, our method has a clear and exact interpretation: it produces a summary measure...

We show that the credit crisis of OECD countries has a negative impact on the growth of the world economy according to an error correction model including China and Australia. This causes negative growth effects in poor developing countries. The reduced growth has a direct or indirect impact on...

We provide regressions for the net immigration flows of developing countries. We show that (i) savings finance emigration and worker remittances serve to make staying rather than migrating possible; (ii) lagged dependent migration flows have a negative sign in the presence of migration stock...

In this paper, we combine the export-led and import-led growth hypotheses in a growth model in which the importation of foreign capital goods and the demand elasticities of own export products explain the growth opportunities and the technical progress of developing countries. This model, based...

The impact of migration and worker remittances on literacy, accumulation of capital and growth is analyzed for a panel of countries with per capita income below $1200 (2000). We estimate regressions for dynamic equations of migration, worker remittances, savings, investment, tax revenues, public...

We estimate the impact of worker remittances on savings, taxes, and public expenditures on education, all as a share of GDP, for about 30 years in two samples of countries with per capita income above and below $1200 using dynamic panel data methods. Remittances increase the savings ratio in...