ANALYSIS OF THE EFFECT OF LABOR REMITTANCE ON ECONOMIC GROWTH IN EMERGING MARKETS COUNTRIES 2000-2019 Very Budiyanto, Wasiaturrahma, Wisnu Wibowo
Faculty of Economics and Business, Airlangga University
Abstract
Remittances are a financial phenomenon and one of the most important sources of funds that have an impact on the world economy, but the impact of sending too much money will cause moral hazard problems. Recipient households use remittances as a substitute for wages, thereby reducing the desire to work. The purpose of this study is to analyze the effect of labor remittances on economic growth in emerging market countries in the period 2000 - 2019. This study uses the Generalized Method Of Moment (GMM) method with panel data (Cross Section and Time Series) in 22 Emerging Markets Countries during the period 2000 - 2019. The results of data testing and discussion, it can be concluded that remittances, productive age population, households final consumption expenditure and exports have a significant effect on economic growth. while the variables of foreign direct investment, education and government spending have no influence on economic growth in emerging market countries.
Keywords: remittances, FDI, productive age population, education, household final consumption expenditure, government spending, exports, generalized method of moment.
