Causality between Foreign Remittance and Economic Growth: Empirical Evidence from Croatia

While human capital and foreign capital have received considerable attention in the study of economic growth, foreign remittances are less of a focus. Though some studies have identified the increasing importance of remittances, they have failed to analyze the relationship between foreign remittance...

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Autores principales:	Craig A. Depken, Maja Nikšić Radić, Hana Paleka
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	economic growth foreign remittance Granger causality impulse response function variance decomposition Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350
Acceso en línea:	https://doaj.org/article/18373f242dcc443db81e3abbb9c9a661
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spelling	oai:doaj.org-article:18373f242dcc443db81e3abbb9c9a6612021-11-11T19:47:41ZCausality between Foreign Remittance and Economic Growth: Empirical Evidence from Croatia10.3390/su1321122012071-1050https://doaj.org/article/18373f242dcc443db81e3abbb9c9a6612021-11-01T00:00:00Zhttps://www.mdpi.com/2071-1050/13/21/12201https://doaj.org/toc/2071-1050While human capital and foreign capital have received considerable attention in the study of economic growth, foreign remittances are less of a focus. Though some studies have identified the increasing importance of remittances, they have failed to analyze the relationship between foreign remittances and economic growth. The aim of this paper is to investigate the causal link between foreign remittances and economic growth in the Republic of Croatia over the period from 2000q1 to 2020q2. Any causal link is identified using Granger causality tests in vector autoregression models. In addition, variance decomposition and impulse response functions help determine any dynamic links. The empirical results suggest that, in the case of Croatia, there is a unidirectional causal relationship from foreign remittances to economic growth but no link in the opposite direction. The research results indicate that foreign remittances play a role in the Croatian economy and are one of the consequences of the large emigration processes that affected Croatia after joining the European Union.Craig A. DepkenMaja Nikšić RadićHana PalekaMDPI AGarticleeconomic growthforeign remittanceGranger causalityimpulse response functionvariance decompositionEnvironmental effects of industries and plantsTD194-195Renewable energy sourcesTJ807-830Environmental sciencesGE1-350ENSustainability, Vol 13, Iss 12201, p 12201 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	economic growth foreign remittance Granger causality impulse response function variance decomposition Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350
spellingShingle	economic growth foreign remittance Granger causality impulse response function variance decomposition Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350 Craig A. Depken Maja Nikšić Radić Hana Paleka Causality between Foreign Remittance and Economic Growth: Empirical Evidence from Croatia
description	While human capital and foreign capital have received considerable attention in the study of economic growth, foreign remittances are less of a focus. Though some studies have identified the increasing importance of remittances, they have failed to analyze the relationship between foreign remittances and economic growth. The aim of this paper is to investigate the causal link between foreign remittances and economic growth in the Republic of Croatia over the period from 2000q1 to 2020q2. Any causal link is identified using Granger causality tests in vector autoregression models. In addition, variance decomposition and impulse response functions help determine any dynamic links. The empirical results suggest that, in the case of Croatia, there is a unidirectional causal relationship from foreign remittances to economic growth but no link in the opposite direction. The research results indicate that foreign remittances play a role in the Croatian economy and are one of the consequences of the large emigration processes that affected Croatia after joining the European Union.
format	article
author	Craig A. Depken Maja Nikšić Radić Hana Paleka
author_facet	Craig A. Depken Maja Nikšić Radić Hana Paleka
author_sort	Craig A. Depken
title	Causality between Foreign Remittance and Economic Growth: Empirical Evidence from Croatia
title_short	Causality between Foreign Remittance and Economic Growth: Empirical Evidence from Croatia
title_full	Causality between Foreign Remittance and Economic Growth: Empirical Evidence from Croatia
title_fullStr	Causality between Foreign Remittance and Economic Growth: Empirical Evidence from Croatia
title_full_unstemmed	Causality between Foreign Remittance and Economic Growth: Empirical Evidence from Croatia
title_sort	causality between foreign remittance and economic growth: empirical evidence from croatia
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/18373f242dcc443db81e3abbb9c9a661
work_keys_str_mv	AT craigadepken causalitybetweenforeignremittanceandeconomicgrowthempiricalevidencefromcroatia AT majaniksicradic causalitybetweenforeignremittanceandeconomicgrowthempiricalevidencefromcroatia AT hanapaleka causalitybetweenforeignremittanceandeconomicgrowthempiricalevidencefromcroatia
_version_	1718431394479210496

Causality between Foreign Remittance and Economic Growth: Empirical Evidence from Croatia

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