This paper investigates the conditional effects of remittances on economic growth in 14 Middle East and North Africa (MENA) countries. Using unbalanced panel data over the period 1982-2016, we study the hypothesis that the effect of remittances on economic growth varies depending on the level of financial development and institutional environment in recipient countries. We use Two-Stage Least Squares (2SLS/IV) instrumental variables method in which we address the endogeneity of remittances. Our results reveal a complementary relationship between financial development and remittances to ensure economic growth. The estimations show that remittances promote growth in countries with a developed financial system and a strong institutional environment.

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El Hamma, I. (2018). Migrant Remittances and Economic Growth: The Role of Financial Development and Institutional Quality. Economie et Statistique / Economics and Statistics, 503-504, 123–142.
https://doi.org/10.24187/ecostat.2018.503d.1961