Remittances, Foreign Debt and Economic Growth: A Cross Country Analysis

Abstract

Remittances are the part of migrant workers and essentially cash exchange who earned by abroad and send their families. Worker remittances are an important part of international capital flows. The volume of remittances increments in developing countries day by day and season via season. Remittances are the backbone for the developing countries. Foreign debt is also an important for economic growth, especially for developing countries. Developing countries can increase their economic growth by using foreign debt in an efficient way. We have used annual data from the period of 2014 cross section of about 217 countries, including Afghanistan, Pakistan, Turkey, Bangladesh, Iraq and China. Results show that there is a positive and significant effect of foreign debt and remittances on economic growth.