The impact of remittance inflows on economic growth, unemployment and income inequality: An international evidence

This study explores the impact of remittance inflows on economic growth, unemployment, and income inequality for high-, low-, and middle-income countries from 1991 to 2020 using fixed effects, random effects, and fully modified ordinary least square estimates. The outcomes confirm that remittance inflows spur the economic growth not only in low- and middle-income countries, but also in high-income countries. However, the remittance inflows increase the unemployment in high-income countries while reducing it in low- and middle-income countries. The income inequality model validated the income inequality mitigating role of remittance inflows across all countries. Based on the estimated outcomes, the study proposes possible policy measures in concluding section.