Macroeconomic Impact of Remittances on Output Growth: Evidence from Turkey
Middle East Technical University (METU) - Department of Economics; Institute for the Study of Labor (IZA); Economic Research Forum (ERF)
Government of the Republic of Turkey - State Planning Organization
June 14, 2010
Migration Letters, Vol. 7, No. 2, pp. 132-143, 2010
This study estimates a Keynesian simultaneous, dynamic macroeconometric model to investigate the impact of remittances on key macro variables such as consumption, investment, imports and income in Turkey. The estimated impact and dynamic multipliers indicate that impact of remittances on consumption, imports and income are all positive and reduce gradually while that on investment wears out in the second year. The impact multiplier for income implies a substantial increase in income due to remittances through the multiplier process. The remittances-induced output growth rate is highest during the early 1970s and the early 1980s, but negligible during the other years.
Number of Pages in PDF File: 22
Keywords: Remittances, Dynamic Model, Remittances-Induced Output Growth
JEL Classification: F22, F21, C52Accepted Paper Series
Date posted: December 17, 2010 ; Last revised: April 23, 2011
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo3 in 0.703 seconds