Abstract
AbstractThe phenomenon of remittances is the subject of intense debate among politicians, researchers, and academics. This is because it touches on a multitude of human, economic, and financial aspects. This paper empirically investigates the empirical relationship between political systems and remittances in order to understand how changes in political systems in the home and host countries affect remittances. By using the gravity model of bilateral remittance flows for 101 sending countries and 92 developing receiving countries for the period 2010–2017. Findings indicate that strengthening democratic processes in countries of origin leads to more remittances. This result is most pronounced in low‐income countries. However, democracy in host countries has a negative effect on remittances. These findings are robust to the different techniques and specifications used. Strengthening democratic institutions in low‐income countries can attract more financial flows.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
