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Article

Role of Remittance on Sustainable Economic Development in Developing and Emerging Economies: New Insights from Panel Cross-Sectional Augmented Autoregressive Distributed Lag Approach

by
Shasnil Avinesh Chand
1,2,* and
Baljeet Singh
1
1
School of Accounting, Finance and Economics, The University of the South Pacific, Laucala Campus, Laucala Bay Road, Suva, Fiji
2
School of Economics and Finance, Fiji National University, Suva P.O. Box 3722, Fiji
*
Author to whom correspondence should be addressed.
J. Risk Financial Manag. 2024, 17(4), 153; https://doi.org/10.3390/jrfm17040153
Submission received: 6 March 2024 / Revised: 5 April 2024 / Accepted: 8 April 2024 / Published: 11 April 2024
(This article belongs to the Special Issue Realizing Economic Diversification from Diverse Economic Perspectives)

Abstract

In this study, we aim to investigate the effects of remittance on sustainable economic development in 52 developing and emerging economies from 1996 to 2021. The study uses other variables such as real GDP per capita, total natural resource rents, globalization, and foreign direct investment. To achieve the mentioned objective, we apply a series of second-generation panel estimation approaches. These include CIPS unit root, Westerlund cointegration, cross-sectional augmented autoregressive distributed lag (CS-ARDL), and robustness using augmented mean group (AMG) and common correlated mean group (CCEMG). These methods are useful provided they are robust towards cross-country dependencies, slope heterogeneity, endogeneity, and serial correlation, which are disregarded in the conventional panel estimations. The empirical findings indicate that remittance accelerates sustainable economic development. Additionally, real GDP per capita and globalization also positively contribute towards sustainable economic development. However, total resource rents deteriorate sustainable economic development. This study offers key policy implications based on the empirical findings for the developing and emerging economies.
Keywords: remittance; sustainable economic development; CS-ARDL; AMG; CCEMG remittance; sustainable economic development; CS-ARDL; AMG; CCEMG

Share and Cite

MDPI and ACS Style

Chand, S.A.; Singh, B. Role of Remittance on Sustainable Economic Development in Developing and Emerging Economies: New Insights from Panel Cross-Sectional Augmented Autoregressive Distributed Lag Approach. J. Risk Financial Manag. 2024, 17, 153. https://doi.org/10.3390/jrfm17040153

AMA Style

Chand SA, Singh B. Role of Remittance on Sustainable Economic Development in Developing and Emerging Economies: New Insights from Panel Cross-Sectional Augmented Autoregressive Distributed Lag Approach. Journal of Risk and Financial Management. 2024; 17(4):153. https://doi.org/10.3390/jrfm17040153

Chicago/Turabian Style

Chand, Shasnil Avinesh, and Baljeet Singh. 2024. "Role of Remittance on Sustainable Economic Development in Developing and Emerging Economies: New Insights from Panel Cross-Sectional Augmented Autoregressive Distributed Lag Approach" Journal of Risk and Financial Management 17, no. 4: 153. https://doi.org/10.3390/jrfm17040153

APA Style

Chand, S. A., & Singh, B. (2024). Role of Remittance on Sustainable Economic Development in Developing and Emerging Economies: New Insights from Panel Cross-Sectional Augmented Autoregressive Distributed Lag Approach. Journal of Risk and Financial Management, 17(4), 153. https://doi.org/10.3390/jrfm17040153

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