Relationship between workers' remittances and economic growth

In recent world, workers' remittances haven attracted great attention of not only governments but also many researchers. Workers remittances remain as an important financial source especially for developing countries. An analysis of existing literature shows that the real impact of workers' remittances on economic growth is still undetermined and a contreversial issue. Main objective of this thesis is therefore to find the possible effects of workers remittamces on economic growth in 34 developing countries for the period between 2002-2014 by employing panel data analysis. Empirical results reveal that workers remittances do not have any significant effect on economic growth of host countries. Furthermore, while human capital, trade openness and investments affect the economic growth positively; inflation and gross domestic product influence the economic growth negatively. Key Words: Economic Growth, Remittances, Panel Data Analysis