THE EFFECT OF WORKER REMITTANCE INF'LOWS ON ECONOMICS GROWTH AND LESSENING POVERTY: AN EMPIRICAL STUDY OF INDONESIA

ishak, Zulkarnain and Bambang , Bemby Soebyakto and imam asngari, imam asngari (2016) THE EFFECT OF WORKER REMITTANCE INF'LOWS ON ECONOMICS GROWTH AND LESSENING POVERTY: AN EMPIRICAL STUDY OF INDONESIA. In: Indonesian Regional Science Association , 25-26 July 2016, Malang. (In Press)

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    Abstract

    In many developing countries, migrant workers' remittances had significant impact on people's income source, especially for the poor. This kind of study is rather rare in Indonesia; therefore it is expected to enrich study on Indonesian remittance. First, the study examines the causal link between the international worker remittances and economic growth. Second, the study analyzes the causal relationship between worker remittances and lessening the number of poor people in Indonesia, based on the Granger causality test and VECM Engle-Granger framework; and applied ordinary least square (OLS) estimation. Using time series data over 3J years from 1983 to 2014, we found that there is a positive relationship between Remittance and economic growth, but it's only one direction causality. Hence the economic growth doesn't cause remittance. Other result show that remittance and poverty have a statistical effect on lessening poverty, as well have certain bidirectional causality

    Item Type: Conference or Workshop Item (Paper)
    Uncontrolled Keywords: Worker remittance, Economic Growth, Poverty, Granger Causality
    Subjects: H Social Sciences > H Social Sciences (General)
    H Social Sciences > HB Economic Theory
    Divisions: Faculty of Economics > Department of Economics and Development Studies
    Depositing User: Muchtar Indana
    Date Deposited: 07 Mar 2017 15:03
    Last Modified: 07 Mar 2017 15:03
    URI: http://eprints.unsri.ac.id/id/eprint/7101

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