Title: A study of selective macroeconomic determinants affecting remittances to India from the USA and GCC countries

Authors: Amit Banerji; Anand Gaurav Chandrawanshi

Addresses: Department of Management Studies, Maulana Azad National Institute of Technology, Bhopal, MP, India ' Department of Management Studies, Samrat Ashok Technological Institute, Vidisha, MP, India

Abstract: This study attempts to examine long run and short run dependence of personal transfers to India from macroeconomic conditions at host countries of Indian emigrants and Indian macroeconomic conditions. Remittances to India seem to be affected by macroeconomic conditions prevailing in the USA, Gulf Cooperation Council (GCC) and India. Vector error correction model (VECM) is applied to study the relationship between the remittances received in India and macroeconomic variables of countries involved in study. Yearly data from 1980 to 2016 of GDP, unemployment rate of GCC, the USA and remittances received in India are used. Results from estimates suggest unidirectional causality from GDP growth of GCC and the USA towards remittances to India. Unemployment rates in India and GCC are also found affecting the remittances to India.

Keywords: remittances; emigration; vector error correction model; VECM; impulse response function; IRF; gross domestic product; GDP; unemployment rate.

DOI: 10.1504/IJBG.2021.120087

International Journal of Business and Globalisation, 2021 Vol.29 No.4, pp.530 - 555

Received: 15 May 2019
Accepted: 07 Jun 2019
Published online: 07 Jan 2022 *

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