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Do migrant remittances promote human capital formation? Evidence from 89 developing countries


Ngoma, Abubakar Lawan and Ismail, Normaz Wana (2013) Do migrant remittances promote human capital formation? Evidence from 89 developing countries. Migration and Development, 2 (1). pp. 106-116. ISSN 2163-2324; ESSN: 2163-2332


The few published empirical studies on the effect of migrant remittances on educational attainments are roughly based on cross-sectional microdata from household surveys. This paper applies the generalised method of moments (GMM) estimator on aggregate level data from 1970 to 2010 in five-year intervals to examine the impact of migrant remittances on human capital formation in 89 developing countries. The estimation results show that, on average, an increase in migrant remittance inflows by 1% is associated with a 2% rise in years of schooling at both the secondary and tertiary levels. This suggests that migrant remittances have the potential to relax liquidity constraints and generate spillover effects that facilitate more schooling opportunities in remittance-receiving countries.

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Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
DOI Number: https://doi.org/10.1080/21632324.2013.786883
Publisher: Routledge
Keywords: Remittances; Human capital formation; Aggregate level data; Dynamic model; Developing countries
Depositing User: Nabilah Mustapa
Date Deposited: 30 Apr 2015 04:01
Last Modified: 07 Dec 2015 08:39
Altmetrics: http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.1080/21632324.2013.786883
URI: http://psasir.upm.edu.my/id/eprint/28338
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