Macroeconomic Impact of Remittances on Output Growth: Evidence from Turkey

Migration Letters, Vol. 7, No. 2, pp. 132-143, 2010

22 Pages Posted: 17 Dec 2010 Last revised: 23 Apr 2011

See all articles by Aysit Tansel

Aysit Tansel

Middle East Technical University (METU) - Department of Economics; IZA Institute of Labor Economics; Economic Research Forum (ERF)

Pinar Yasar

Government of the Republic of Turkey - State Planning Organization

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Date Written: June 14, 2010

Abstract

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.

Keywords: Remittances, Dynamic Model, Remittances-Induced Output Growth

JEL Classification: F22, F21, C52

Suggested Citation

Tansel, Aysit and Yasar, Pinar, Macroeconomic Impact of Remittances on Output Growth: Evidence from Turkey (June 14, 2010). Migration Letters, Vol. 7, No. 2, pp. 132-143, 2010, Available at SSRN: https://ssrn.com/abstract=1725166

Aysit Tansel (Contact Author)

Middle East Technical University (METU) - Department of Economics ( email )

Inonu Bulvari
Ankara 06800
Turkey
90 312 210 2073 (Phone)
90 312 210 7964 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Economic Research Forum (ERF) ( email )

21 Al-Sad Al-Aaly St.
(P.O. Box: 12311)
Dokki, Cairo
Egypt

Pinar Yasar

Government of the Republic of Turkey - State Planning Organization ( email )

Yucetepe, 06100, Ankara
Turkey
903122942350 (Phone)

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