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Volume :17 Issue : 3 2010      Add To Cart                                                                    Download

Is Economic Freedom a Significant Determinant of Migrant Remittances? Empirical Evidence from Asian Labor Exporting Countries

Auther : Ali S. Arifa
Mohammed I. El-Sakka

This paper is an empirical investigation of how the inflows of remittances in a sample of eight Asian economies are determined by a number of macroeconomic factors, some of which are a reflection of the effect of their institutional set-ups. The main hypotheses tested here evolve around the extent to which the flows of remittances are influenced by three variables measuring the degrees of fiscal, monetary and financial freedoms. The evidence suggests overwhelmingly that higher economic freedom in this sense exerts a strong significant impact on the inflows of remittances. The model specified for the purpose of this investigation is estimated using a panel error correction technique. Prior to the estimation, the data is subjected to a battery of panel unit root and cointegration tests. The purpose for the extensive testing is to assess the properties of the data with respect to unit roots, and to identify whether there is a long-run equilibrium relationship among the variables of the model.

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