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Kanfitine Lare-Lantone
Université de Lomé, Togo.


I examined the remittances-induced growth threshold constraints effect to circumvent the risk that related-policies adversely affect receiving countries and households. I built and tested a macro dynamic model using Panel Least Square and GMM estimations on a 36 countries panel data for the period 1980-2013, obtained from the World Development Indicators and Poverty and Equity databases and the International Financial Statistics. I further, pooled the data to derive thresholds values of growth
induced by remittance flows to 24 countries’ economies, agriculture sectors, and industry sectors respectively. The empirical results reveal that a country’s ability to reap remittances-induced growth is most effectively captured using its own individual threshold as criteria than a group’s threshold. The transmission of the impact is a long term process, independently determined between an economy and its sectors. Transitory effects generated by remittance flows are more sensitive to fluctuations in consumption, investments, and wages than mutations in financial sectors, a sign that financial development is not inherent to the remittances-growth relation. Globally, these findings suggest that failures to accommodate transitory effects with appropriate measures and/or deviations of remitted resources to non-households’ uses, at pre threshold phases, will necessarily curtail the growth-generating and poverty-reduction powers of remittances.

Key words: remittances, growth, thresholds, financial sector, transitory effects, phases.

JEL Codes: E61, F24, O40

1Kanfitine Lare-Lantone Ph.D., Advanced Assistant Professor, Economics Department, Université de Lomé, Togo, 2224-2700 Aquitaine Avenue, Mississauga, ON L5N 3J6, Canada, E-mail: