Petkovski, Mihail and Kjosevski, Jordan and Simeonovski, Kiril (2024) Testing for Causality between Remittances and Inflation: Evidence from Central and Eastern Europe. PANOECONOMICUS, 71 (2). pp. 191-213.
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Abstract
The goal of this study is to examine the impact of remittance inflow
on inflation using the System Generalized Method of Moments (SGMM) and Dumitrescu-
Hurlin Granger causality approach in countries from Central and Eastern
Europe over the period 1994 to 2019. As the levels of economic and financial
development vary considerably across these countries and some of them are
member states of the European Union (EU), we split them into two more homogenous
groups - EU member states and non-EU countries. The application of the
SGMM approach reveals that remittances have a negative and significant impact
on inflation in the non-EU countries, whereas they exert positive impact in the
EU member states and in the whole region overall. The Granger causality test
shows a unidirectional causal relationship between remittances and inflation in
all country groups, whereas the existence of a positive causal relationship from
remittances to inflation has been established in twelve countries.
| Item Type: | Article |
|---|---|
| Subjects: | Scientific Fields (Frascati) > Social Sciences > Economics and Business |
| Depositing User: | UKLO Mrezha |
| Date Deposited: | 27 May 2024 05:59 |
| Last Modified: | 27 May 2024 05:59 |
| URI: | https://eprints.uklo.edu.mk/id/eprint/9925 |
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