F24 - RemittancesNávrat zpět

This investigation explores the influence of remittances on economic growth in Algeria during the period 1970–2022 using the Fourier autoregressive distributed lags (FARDL) model. This study provides new insights by suggesting an N-shaped association between remittances and economic growth. The findings reveal a nonlinear relationship between remittances and growth in Algeria. Initially, the impact of remittances on income is positive, then becomes negative when they exceed a threshold of 1.2% of GDP, and later becomes positive again when remittances surpass a second threshold estimated at 1.894% of GDP. These results highlight the importance of increasing remittance inflows to promote development in Algeria and urge decision-makers to create conditions that encourage the inflow of these funds through official channels

Remittances are a major source of income for many countries. In this regard, the importance of remittances to national economies is increasing. Altruism and self-interest are the two main motivations for remitting. Economic policy uncertainty may determine which of these motivations is more prevalent. Therefore, the aim of this study is to examine the altruism and self-interest hypotheses. In this study, unbalanced panel data are used to analyse the remittances received by the top 10 countries. These countries account for half of all remittances in the world. Due to cross-sectional dependence in our dataset, we need to use methods with robust standard errors. The results of four different estimation methods used for panel data are consistent. Economic policy uncertainty has a negative impact, whereas economic growth has a positive impact on remittances. These findings indicate that people who send remittances act out of self-interest. Trade openness contributes to an increase in remittances. Furthermore, the wealth effect shaped by self-interest leads to an increase in remittances from workers.