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Appendix 1. List of the Sample Countries
Appendix 2. Variable Definitions and Sources
Appendix 3. Correlation Matrix
Appendix 4. Descriptive Statistics
K. Kpodar is an Economist at the International Monetary Fund (IMF) and Research Fellow at the Centre for Studies and Research on International Development (CERDI); M. Le Goff is an Economist at the French Centre for Research and Studies on the World Economy (CEPII). We would like to thank Enrico Berkes, Patrick Guillaumont, Elliott Harris, Patrick Imam, Salifou Issoufou, Thierry Kangoye, Nkunde Mwase, and Raju Singh for insightful comments and suggestions, and Jenny Kletzin DiBiase for helpful editorial comments. We are also grateful to participants at the CERDI Seminar in June 2010, and the 15th Annual Conference of the AES on Econometric Modeling for Africa in July 2010. The usual disclaimer applies.
The impact of remittances on growth remains, however, heavily debated in the empirical literature with findings ranging from a negative impact (Chami, Fullenkamp, and Jahjah, 2003) to a positive impact depending on country’s characteristics (Giuliano and Ruiz-Arranz, 2009; Singh and others, 2011).
Using a dyadic panel data set of 19 donors and 165 recipient countries from 1992- through 2005, Bermeo and Leblang (2009) find that aid recipient countries receive more aid with more migrants living in the donor country. But, they also argue that donor countries may use aid to decrease unwanted immigration. In that case remittances would be negatively correlated with aid flows.
This implies that through the human capital channel, remittances can have opposite effects on aid flows, though the net effect is likely to be a reduction in aid dependency.