AUTHOR=Miao Meng , Qamruzzaman Md. 

TITLE=Dose Remittances Matter for Openness and Financial Stability: Evidence From Least Developed Economies

JOURNAL=Frontiers in Psychology

VOLUME=Volume 12 - 2021

YEAR=2021

URL=https://www.frontiersin.org/journals/psychology/articles/10.3389/fpsyg.2021.696600

DOI=10.3389/fpsyg.2021.696600

ISSN=1664-1078

ABSTRACT=The study's motivation is to gauge the effects of remittances on openness: financial and economic openness and financial stability in the least developed countries for the period spanning from 1976-2018. The study applies Generalized Moment of Methods (GMM) and System-GMM for detecting the magnitude of remittances, capital formation, and government debt on openness and financial stability and their directional association establishes by performing a granger causality test with System-GMM specification. Panel cointegration test based on error correction confirms the availability of long-run association among variables. In LDCs, remittances inflow positively augmented economic and financial openness; moreover, bringing financial stability remittances plays a critical role. The feedback hypothesis explains the causal effects of openness and remittances and financial stability and remittances with consideration of directional causality.