The Impact of Remittances on Economic Growth in Asian Countries: The Role of Institutions

Abstract

This paper examines the impact of remittances on economic growth under the role of institutions in Asian countries during the period 2005 – 2018 by using SGMM method. The results point out that remittances have a negative effect on economic growth, and national institutions have a certain role in the impact of remittances on economic growth in Asian countries. To measure the quality of institutions in the sample countries, a common set of indicators of Country Policy and Institutional Assessment index (CPIA), which are annually announced by the World Bank and worldwide used to evaluate institutions and policies every year with high transparency.