The Role of Workers' Remittances and Their Interaction with Physical and Human Capital in Stimulating Economic Growth in Jordan (1979-2015)

Eyad Moufaq Alkousini

doi:doi:10.11648/j.ijber.20200905.19

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The Role of Workers' Remittances and Their Interaction with Physical and Human Capital in Stimulating Economic Growth in Jordan (1979-2015)

Eyad Moufaq Alkousini

Published in International Journal of Business and Economics Research (Volume 9, Issue 5)

Received: 9 October 2020 Accepted: 20 October 2020 Published: 26 October 2020

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Abstract

The objectives of this research are diverse. First, determine the impact of workers’ remittances on Jordan’s economic growth during the period. The second goal in the second and third models is to determine the role of remittance in economic growth if we allow the interaction between workers’ remittances and human capital and physical capital, according to the theory of endogenous growth. For this purpose, time series analysis (cointegration tests and vector error correction model) is used. Corresponding it is found that all the series representing the variables are stationary at the first difference. The results also show that there are two cointegration vectors relating the variables. Therefore, the model was estimated using vector error correction model, which showed a long-term relationship between economic growth and explanatory variables. The estimate according to the first model showed that there is a significant positive effect for each of the workers' remittances, the variables of trade openness, financial policy, and the development of the financial system. while the physical and human capital variables have significance negative impact on growth. In the second and third model, it agreed with the endogenous growth theory, that if workers 'remittances are directed towards supporting physical and human capital, the impact of workers' remittances on economic growth will increase.

Published in	International Journal of Business and Economics Research (Volume 9, Issue 5)
DOI	10.11648/j.ijber.20200905.19
Page(s)	354-363
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Workers’ Remittances, Human Capital, Economic Growth, Physical Capital, Endogenous Growth Theory

References

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[6]	Buch, C., Kuckulenz, A., & Le Manchec, M. (2002). Worker remittances and capital flows. Kiel working paper no. 1130. Kiel: Kiel Institute for World Economics.
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[19]	Nsiah, C., &Fayissa, B. (2011). Remittances and economic growth in Africa, Asia, and Latin American-Caribbean countries: a panel unit root and panel cointegration analysis. Journal of Economics and Finance, 1-18.
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APA Style

Eyad Moufaq Alkousini. (2020). The Role of Workers' Remittances and Their Interaction with Physical and Human Capital in Stimulating Economic Growth in Jordan (1979-2015). International Journal of Business and Economics Research, 9(5), 354-363. https://doi.org/10.11648/j.ijber.20200905.19

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ACS Style

Eyad Moufaq Alkousini. The Role of Workers' Remittances and Their Interaction with Physical and Human Capital in Stimulating Economic Growth in Jordan (1979-2015). Int. J. Bus. Econ. Res. 2020, 9(5), 354-363. doi: 10.11648/j.ijber.20200905.19

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AMA Style

Eyad Moufaq Alkousini. The Role of Workers' Remittances and Their Interaction with Physical and Human Capital in Stimulating Economic Growth in Jordan (1979-2015). Int J Bus Econ Res. 2020;9(5):354-363. doi: 10.11648/j.ijber.20200905.19

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@article{10.11648/j.ijber.20200905.19,
  author = {Eyad Moufaq Alkousini},
  title = {The Role of Workers' Remittances and Their Interaction with Physical and Human Capital in Stimulating Economic Growth in Jordan (1979-2015)},
  journal = {International Journal of Business and Economics Research},
  volume = {9},
  number = {5},
  pages = {354-363},
  doi = {10.11648/j.ijber.20200905.19},
  url = {https://doi.org/10.11648/j.ijber.20200905.19},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20200905.19},
  abstract = {The objectives of this research are diverse. First, determine the impact of workers’ remittances on Jordan’s economic growth during the period. The second goal in the second and third models is to determine the role of remittance in economic growth if we allow the interaction between workers’ remittances and human capital and physical capital, according to the theory of endogenous growth. For this purpose, time series analysis (cointegration tests and vector error correction model) is used. Corresponding it is found that all the series representing the variables are stationary at the first difference. The results also show that there are two cointegration vectors relating the variables. Therefore, the model was estimated using vector error correction model, which showed a long-term relationship between economic growth and explanatory variables. The estimate according to the first model showed that there is a significant positive effect for each of the workers' remittances, the variables of trade openness, financial policy, and the development of the financial system. while the physical and human capital variables have significance negative impact on growth. In the second and third model, it agreed with the endogenous growth theory, that if workers 'remittances are directed towards supporting physical and human capital, the impact of workers' remittances on economic growth will increase.},
 year = {2020}
}

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TY  - JOUR
T1  - The Role of Workers' Remittances and Their Interaction with Physical and Human Capital in Stimulating Economic Growth in Jordan (1979-2015)
AU  - Eyad Moufaq Alkousini
Y1  - 2020/10/26
PY  - 2020
N1  - https://doi.org/10.11648/j.ijber.20200905.19
DO  - 10.11648/j.ijber.20200905.19
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 354
EP  - 363
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20200905.19
AB  - The objectives of this research are diverse. First, determine the impact of workers’ remittances on Jordan’s economic growth during the period. The second goal in the second and third models is to determine the role of remittance in economic growth if we allow the interaction between workers’ remittances and human capital and physical capital, according to the theory of endogenous growth. For this purpose, time series analysis (cointegration tests and vector error correction model) is used. Corresponding it is found that all the series representing the variables are stationary at the first difference. The results also show that there are two cointegration vectors relating the variables. Therefore, the model was estimated using vector error correction model, which showed a long-term relationship between economic growth and explanatory variables. The estimate according to the first model showed that there is a significant positive effect for each of the workers' remittances, the variables of trade openness, financial policy, and the development of the financial system. while the physical and human capital variables have significance negative impact on growth. In the second and third model, it agreed with the endogenous growth theory, that if workers 'remittances are directed towards supporting physical and human capital, the impact of workers' remittances on economic growth will increase.
VL  - 9
IS  - 5
ER  -

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Author Information

Eyad Moufaq Alkousini

Department of Management Sciences, Al-Rashid International Private University, Damascus, Syria

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APA Style

Eyad Moufaq Alkousini. (2020). The Role of Workers' Remittances and Their Interaction with Physical and Human Capital in Stimulating Economic Growth in Jordan (1979-2015). International Journal of Business and Economics Research, 9(5), 354-363. https://doi.org/10.11648/j.ijber.20200905.19

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ACS Style

Eyad Moufaq Alkousini. The Role of Workers' Remittances and Their Interaction with Physical and Human Capital in Stimulating Economic Growth in Jordan (1979-2015). Int. J. Bus. Econ. Res. 2020, 9(5), 354-363. doi: 10.11648/j.ijber.20200905.19

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AMA Style

Eyad Moufaq Alkousini. The Role of Workers' Remittances and Their Interaction with Physical and Human Capital in Stimulating Economic Growth in Jordan (1979-2015). Int J Bus Econ Res. 2020;9(5):354-363. doi: 10.11648/j.ijber.20200905.19

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@article{10.11648/j.ijber.20200905.19,
  author = {Eyad Moufaq Alkousini},
  title = {The Role of Workers' Remittances and Their Interaction with Physical and Human Capital in Stimulating Economic Growth in Jordan (1979-2015)},
  journal = {International Journal of Business and Economics Research},
  volume = {9},
  number = {5},
  pages = {354-363},
  doi = {10.11648/j.ijber.20200905.19},
  url = {https://doi.org/10.11648/j.ijber.20200905.19},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20200905.19},
  abstract = {The objectives of this research are diverse. First, determine the impact of workers’ remittances on Jordan’s economic growth during the period. The second goal in the second and third models is to determine the role of remittance in economic growth if we allow the interaction between workers’ remittances and human capital and physical capital, according to the theory of endogenous growth. For this purpose, time series analysis (cointegration tests and vector error correction model) is used. Corresponding it is found that all the series representing the variables are stationary at the first difference. The results also show that there are two cointegration vectors relating the variables. Therefore, the model was estimated using vector error correction model, which showed a long-term relationship between economic growth and explanatory variables. The estimate according to the first model showed that there is a significant positive effect for each of the workers' remittances, the variables of trade openness, financial policy, and the development of the financial system. while the physical and human capital variables have significance negative impact on growth. In the second and third model, it agreed with the endogenous growth theory, that if workers 'remittances are directed towards supporting physical and human capital, the impact of workers' remittances on economic growth will increase.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - The Role of Workers' Remittances and Their Interaction with Physical and Human Capital in Stimulating Economic Growth in Jordan (1979-2015)
AU  - Eyad Moufaq Alkousini
Y1  - 2020/10/26
PY  - 2020
N1  - https://doi.org/10.11648/j.ijber.20200905.19
DO  - 10.11648/j.ijber.20200905.19
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 354
EP  - 363
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20200905.19
AB  - The objectives of this research are diverse. First, determine the impact of workers’ remittances on Jordan’s economic growth during the period. The second goal in the second and third models is to determine the role of remittance in economic growth if we allow the interaction between workers’ remittances and human capital and physical capital, according to the theory of endogenous growth. For this purpose, time series analysis (cointegration tests and vector error correction model) is used. Corresponding it is found that all the series representing the variables are stationary at the first difference. The results also show that there are two cointegration vectors relating the variables. Therefore, the model was estimated using vector error correction model, which showed a long-term relationship between economic growth and explanatory variables. The estimate according to the first model showed that there is a significant positive effect for each of the workers' remittances, the variables of trade openness, financial policy, and the development of the financial system. while the physical and human capital variables have significance negative impact on growth. In the second and third model, it agreed with the endogenous growth theory, that if workers 'remittances are directed towards supporting physical and human capital, the impact of workers' remittances on economic growth will increase.
VL  - 9
IS  - 5
ER  -

Copy | Download