Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/213439 
Year of Publication: 
2020
Publisher: 
ZBW – Leibniz Information Centre for Economics, Kiel, Hamburg
Abstract: 
This article has considered the effect of development aid and remittances inflows on wages in the manufacturing sector of the recipient-economies. The empirical analysis has used a sample of 95 countries over the period 1963-2016, and on the two-step system Generalized Methods of Moments (GMM). Results show for the full sample that while remittances influence positively wages, development aid exerts a negative effect on wages, although LDCs enjoy a positive effect of development aid on wages. Additionally, the effects of development aid and remittances on wages depend on the prevailing real exchange rate as well as the values of manufacturing exports.
Subjects: 
Development aid
Remittances inflows
Wages in the manufacturing sector
Real Exchange Rate
Manufactured exports
JEL: 
F35
J30
O14
Document Type: 
Working Paper

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