Impact of Remittances on Economic growth in selected Asian and Former Soviet Union countries

Abstract: Recent increase in the international remittance transfers from developed to developing countries has caught great attention among academic scholars and policymakers. This paper investigates the potential impact of these workers’ remittances on the long-term economic growth of recipient countries. The results of the empirical regression analysis indicate that remittances have positive effect on the per capita income growth of 10 selected countries. Furthermore, the paper investigates the channels through which these worker’ remittances can have positive impact on the economic growth. The results suggest that remittances have no impact on physical capital accumulation but positive impact on human capital accumulation in these countries.