An examination of the remittance, financial development, and economic growth in developing countries

In this paper, we examine the causal relations between remittance, financial development, and economic growth in developing countries during the period of 1971?2010. We apply new methods based on simulations. Our ARDL-ECM estimation results disclose that the relations between remittance, financial development, and economic growth are country specific. Long-run bidirectional causality exists between remittance and economic growth in Bangladesh. Short-run unidirectional causality between economic growth and remittance exists in India. Reverse causality exists for Mexico and the Philippines. Remittance can play an important impact on the economic and financial development of the recipient countries.