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Does remittance inflow influence human development in south Asian countries? An empirical insight
Author(s) -
Sahoo Malayaranjan,
Sucharita Sanhita,
Sethi Narayan
Publication year - 2020
Publication title -
business strategy and development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.488
H-Index - 7
ISSN - 2572-3170
DOI - 10.1002/bsd2.123
Subject(s) - remittance , human capital , economics , human development (humanity) , life expectancy , cointegration , foreign direct investment , human development index , development economics , macroeconomics , economic growth , econometrics , population , demography , sociology
This article investigate the relationship between human development, remittance inflows, and other macroeconomic variables like life expectancy, human capital, FDI, CPI, economic growth, and financial development in South Asia during 1990–2018. The Fisher residual co‐integration test confirms that there is a co‐integration among the variables. The VECM approach also indicates that there is a long run relationship among the variables. We apply FMOLS and DOLS to show the long run elasticity of explanatory variables in this article. Remittance indicates positive and significant effect on human development. We find that there is a positive effect between government expenditure and human development. Similarly, life expectancy rate and human capital has a positive effect on human development. There is a unidirectional causality between remittance and human development in South Asian region. We can suggest that public policies can be conceived to promote health, education, and income, thereby encouraging and enhancing human development.