Dose Remittances Matter for Openness and Financial Stability: Evidence From Least Developed Economies.

ABSTRACT: The study's motivation is to gauge the effects of remittances on openness: financial and economic openness and financial stability in least developed countries (LDCs) for the period spanning 1975-2018. The study applies Generalized Moment of Methods (GMM) and System-GMM to detect the magnitude of remittances, gross capital formation, and government debt on openness and financial stability, and their directional association is established by performing a Granger causality test with System-GMM specification. The results of cross-sectional dependency ascertain the presence of a common dynamic among the research units; on the other hand, both first, and second-generation unit root tests establish that variables are integrated either at level or after the first difference, neither variables are

SUBMITTER: Miao M 

PROVIDER: S-EPMC8382878 | biostudies-literature | 2021

REPOSITORIES: biostudies-literature