Remittances and the Effectiveness of Foreign Aid

Anna Minasyan, Peter Nunnenkamp*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

8 Citations (Scopus)

Abstract

We argue that donors could improve the effectiveness of foreign aid by pursuing complementary and coherent non-aid policies. In particular, we hypothesize that aid has stronger growth effects if recipients receive more aid from donors who allow for (temporary) worker mobility and (more permanent) migration. We focus on overall remittances paid by the donor countries to proxy for worker mobility and migration. Our empirical results support the hypothesis that higher remittances paid by donor countries strengthen the growth effects of foreign aid.

Original languageEnglish
Pages (from-to)681-701
Number of pages21
JournalReview of Development Economics
Volume20
Issue number3
DOIs
Publication statusPublished - Aug-2016
Externally publishedYes

Keywords

  • INTERNATIONAL MIGRATION
  • DEVELOPING-COUNTRIES
  • ECONOMIC-GROWTH
  • DONOR
  • TRADE
  • ALLOCATION
  • NETWORKS
  • GOVERNMENTS
  • INVESTMENT
  • RECIPIENTS

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