THE EFFECTS OF FDI AND REMITTANCES ON THE ECONOMIC GROWTH OF SELECTED SAARC COUNTRIES

Abstract

Foreign direct investment (FDI) contributes to the economic development of a country via technology spillovers, the production of human capital, and the integration of international commerce. Remittances are a well-known useful source of revenue for developing nations, and they are growing in popularity. Increased GDP, funding of investments and the reduction of poverty are all advantages for economies. In this study, we examined the impact of FDI and remittances on the economies of the five selected SAARC countries, consisting of Afghanistan, Bangladesh, India, Sri Lanka, and Pakistan. The data was used for the period of 2008-2020. For the mentioned study, co-integrating regression was used to investigate the long-run association between these variables. In order to know the impact of the independent variables on the dependent variables, we used the Fully Modified Ordinary Least Square and Dynamic Ordinary Least Square regression tests which are used for co-integrating and non-stationary data. The results suggested that foreign direct investment (FDI) and remittances have positive effects on the economic growth of the panel nations. Furthermore, we conducted the Granger causality test, and the findings revealed that remittances and economic growth are both influenced by each other in a bidirectional way and no causality relationship between FDI and economic growth.

Keywords

• Remittances
• FDI
• Economic growth
• FMOLS
• DOLS

DYY ve İşçi Havalelerinin Seçilmiş SAARC Ülkelerinin Ekonomik Büyümesi Üzerindeki Etkileri

Öz

Doğrudan yabancı yatırım (DYY), teknoloji yayılmaları, insan sermayesi üretimi ve uluslararası ticaretin entegrasyonu yoluyla bir ülkenin ekonomik kalkınmasına katkıda bulunur. Havaleler, gelişmekte olan ülkeler için iyi bilinen yararlı bir gelir kaynağıdır ve popülaritesi artmaktadır. Artan GSYİH, yatırımların finansmanı ve yoksulluğun azaltılması ekonomiler için avantajlardır. Bu çalışmada, Afganistan, Bangladeş, Hindistan, Sri Lanka ve Pakistan'dan oluşan seçilmiş beş SAARC ülkesinin ekonomileri üzerindeki DYY ve işçi dövizlerinin etkisini inceledik. Veriler 2008-2020 dönemi için kullanılmıştır. Bahsedilen çalışma için, bu değişkenler arasındaki uzun dönemli ilişkiyi araştırmak için eşbütünleşik regresyon kullanılmıştır. Bağımsız değişkenlerin bağımlı değişkenler üzerindeki etkisini bilmek için, eşbütünleşik ve durağan olmayan veriler için kullanılan Tam Değiştirilmiş Sıradan En Küçük Kare ve Dinamik Sıradan En Küçük Kare regresyon testleri kullanılmıştır. Sonuçlar, doğrudan yabancı yatırımın (DYY) ve işçi dövizlerinin panel ülkelerin ekonomik büyümesi üzerinde olumlu etkileri olduğunu ortaya koymuştur. Ayrıca, Granger nedensellik testi gerçekleştirilmiş ve bulgular, işçi dövizlerinin ve ekonomik büyümenin birbirlerinden çift yönlü bir şekilde etkilendiğini ve DYY ile ekonomik büyüme arasında hiçbir nedensellik ilişkisi olmadığını ortaya koymuştur.

Anahtar Kelimeler

• İşçi Dövizleri
• DYY
• Ekonomik büyüme
• FMOLS
• DOLS

Kaynakça

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