Description |
1 online resource (31 pages) |
Series |
IMF working paper, 2227-8885 ; WP/08/29 |
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IMF working paper ; WP/08/29.
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Contents |
I. Introduction; II. A Simple Model: Public Good Provision in The Presence of Non-Taxable Remittances; A. The Representative Agent Problem; B. The Government's Problem; C. Stackelberg Game; D. Discussion; III. Evidence; A. OLS Results; B. The Coastal Area as an Instrument for Remittances; C. Robustness; IV. Conclusions; References; Appendixes; Appendix A; Appendix Tables; 1.; 2.; 3.; 4.; 5.; 6.; 7.; 8.; Appendix B; 9: List of Regressors; 10: The Governance Indicators; Appendix C |
Summary |
This paper addresses the complex and overlooked relationship between the receipt of workers' remittances and institutional quality in the recipient country. Using a simple model, we show how an increase in remittance inflows can lead to deterioration of institutional quality - specifically, to an increase in the share of funds diverted by the government for its own purposes. Empirical testing of this proposition is complicated by the likelihood of reverse causality. In a cross section of 111 countries we document a negative impact of the ratio of remittance inflows to GDP on domestic institutional quality, even after controlling for potential reverse causality. We find that a higher ratio of remittances to GDP is associated with lower indices of control of corruption, government effectiveness, and rule of law |
Bibliography |
Includes bibliographical references (pages 18-20) |
Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
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digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL |
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Print version record |
Subject |
Emigrant remittances -- Econometric models
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Public goods -- Econometric models
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Political corruption -- Econometric models
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Emigrant remittances -- Econometric models
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Public goods -- Econometric models
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Form |
Electronic book
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Author |
Abdih, Y. (Yasser), author.
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IMF Institute.
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International Monetary Fund.
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ISBN |
1282542001 |
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9781282542006 |
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1451913443 |
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9781451913446 |
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9781451868913 |
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145186891X |
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