What role do international remittance inflows play in boosting agricultural productivity? Empirical analysis of emerging Asian economies
Abstract
Purpose
This article investigates the long-run impact of remittance inflows on agricultural productivity (AGP) in emerging Asian economies (Bangladesh, Sri Lanka, Malaysia, India, Nepal, Philippines, Pakistan, and Vietnam), employing a panel dataset from 2000 to 2018.
Design/methodology/approach
This study initially applies cross-sectional dependence (CSD), second-generation unit root, Pedroni, and Westerlund panel co-integration techniques. Next, it uses the augmented mean group (AMG) and common correlated effect mean group (CCEMG) methods to investigate the long-term impact of remittance inflows on AGP while controlling for several other important determinants of agricultural growth, such as cultivated area, fertilizers, temperature change, credit, and labor force.
Findings
The empirical findings are as follows: The results first revealed the existence of CSD and long-term co-integration between AGP and its determinants. Second, remittance inflows significantly boosted AGP, indicating that remittance inflows played a crucial role in improving AGP. Third, global warming (changes in temperature) negatively impacts AGP. Finally, additional critical elements, for instance, cultivated area, fertilizers, credit, and labor force, positively affect AGP.
Research limitations/implications
This study suggests that policymakers of emerging Asian economies should develop an exclusive remittance-receiving system and introduce remittance investment products to utilize foreign funds and mitigate agricultural production risks effectively.
Originality/value
This is the first empirical examination of the long-term impact of remittance flows on agricultural output in emerging Asian economies. This study utilized robust estimation methods for panel data sets, such as the Pedroni, Westerlund, AMG, and CCEMG tests.
Keywords
Acknowledgements
Since acceptance of this article, the following author(s) have updated their affiliations: Waqar Akram is at the School of Accounting, Finance, and Economics (SAFE) University of Waikato, Hamilton Campus, New Zealand, Muhammad Usman is at the School of Economics and Management, and Center for Industrial Economics, Wuhan University, Wuhan, China, Munir Ahmad is at the College of International Economics and Trade, Ningbo University of Finance and Economics, Ningbo, China and “Belt and Road” Bulk Commodity Research Center, Ningbo University of Finance and Economics, Ningbo, China and Yuansheng Jiang is at the College of Economics, Sichuan Agricultural University, Chengdu, China.
Citation
Chandio, A.A., Bashir, U., Akram, W., Usman, M., Ahmad, M. and Jiang, Y. (2023), "What role do international remittance inflows play in boosting agricultural productivity? Empirical analysis of emerging Asian economies", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-06-2022-1019
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited