Using the ARDL model and recently developed financial development index, we test whether there is a non-linear relationship between financial development and remittances over the period 1980–2015 i...

Remittances and financial development in Bangladesh: substitutes or complements?

The impact of remittances on savings, capital and economic growth in small emerging countries

Despite the importance of remittance inflows as potential source of incomes for recipient households and one of main contributors to the development process in various developing countries, their environmental effects have been largely neglected in empirical literature. To fill this gap, the current study proposes an extension of the conventional environmental Kuznets curve by performing a modified version based on remittance inflows in both low- and middle-income countries from 1980 to 2014. Using the novel method of moments quantile regression with fixed effect, the outcomes provide evidence of an inverted N-shaped Kuznets curve for remittances at higher carbon dioxide emitters in lower middle-income countries, proving that remittances allow recipient households to shift toward clean energy pattern (production/consumption). We find U-shaped curve for remittances from the 40th to 80th quantiles in upper middle-income countries along with monotonic negative effect on carbon dioxide emissions at highest quantiles (90th and 95th). No significant effect on environment has been outlined at lower carbon dioxide emitters for all panels. Regarding economic growth, an inverted N-shaped curve has been observed across all quantiles in upper middle-income countries and from lower to middle quantiles in low-income countries. Finally, financial development, as control variable, exerts significant mixed effect on carbon dioxide emissions, swung between positive at all quantiles in low- and upper middle-income countries and negative at lower quantiles in low-income countries. Some recommendations were further built in the present study.

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The environmental impact of remittance inflows in developing countries: evidence from method of moments quantile regression.

Many studies have underlined the detrimental impact of local political risk on foreign direct investment inflows. In this paper, we argue that that relationship depends on the global volume of FDI. After providing a simple model and theoretical arguments suggesting that the relationship should be weaker when there is more FDI worldwide, we observe, in a large sample of countries, that the sensitivity of the distribution of FDI inflows to local political risk is indeed a decreasing function of the world FDI to GDP ratio in a given year. This finding survives a battery of robustness checks.

FDI Waves, Waves of Neglect of Political Risk

The study asseses the influence of migrant remittances on financial development over the period of 1976-2018 in Pakistan. This study has applied the linear autoregressive distributive lag (ARDL) model and nonlinear autoregressie distributed lag (NARDL) model to check the symmetric and asymmetric effect of remittances. Results of the ARDL and NARDL bound test confirm remittances, FDI, real GDP and inflation significantly contributing to financial development. The outcomes of ARDL and NARDL have also confirmed the significant positive effect of  migrant remittances on financial development in long-run. The asymmetric ARDL  results show the existence of remittances nonlinear effect  on financial development. Specifically, the study found remittances decrease have a significant impact while remittances increase have no any significant effect on financial development. Based on findings, this study recommends the plan for the policymakers of recipient countries, especially Pakistan, could harvest the potential gain of migrant remittances though positive asymmetric association with financial sector development.

Do Migrant Remittances Spur Financial Development in Pakistan?evidence From Linear and Nonlinear Ardl Approach

Remittance volatility and financial sector development in sub-Saharan African countries

The determinants of private capital flow volatility in Sub-Saharan African countries

Abstract Sub-Saharan Africa (SSA) ranks lowest globally in respect of energy access rates. The resulting high energy poverty impedes sustainable economic growth and aggravates the overall poverty which is prevalent in SSA countries. A better understanding of the relationship between financial development and energy consumption can contribute to enhancing sustainable development in SSA. The existing literature presents conflicting evidence regarding this relationship. Our objective is to investigate the symmetric and asymmetric relationships between financial development and energy consumption in SSA, using annual data from 1990 to 2016. The Autoregressive Distributed Lag (ARDL) panel estimator was employed to test for the linear relationship and symmetric effects of the long-run and short-run coefficients. The asymmetry was determined by decomposing financial development into positive and negative components, employing the non-linear ARDL (NARDL) method. The results reveal that a positive financial development shock is positively linked with energy consumption in the long-run implying that further financial development intensifies energy consumption. Results of the negative shock in financial development is positively linked with energy consumption in the long-run implying that the reduction in financial development could decrease energy consumption.

https://www.tandfonline.com/doi/pdf/10.1080/23322039.2022.2095770?needAccess=true

Pieter Opperman

Papers

Remittance volatility and financial sector development in sub-Saharan African countries

The determinants of private capital flow volatility in Sub-Saharan African countries

The asymmetric effect of financial development on energy consumption in sub-Saharan Africa