Does economic policy uncertainty influences personal remittances: Evidences from AARDL and NARDL
School of Business and Economics, United International University, Dhaka-121, Bangladesh.
Research Article
World Journal of Advanced Research and Reviews, 2023, 18(01), 014–034
Article DOI: 10.30574/wjarr.2023.18.1.0535
Publication history:
Received on 21 February 2023; revised on 01 April 2023; accepted on 04 April 2023
Abstract:
The purpose of this research is to investigate the impact of economic policy uncertainty (EPU) and financial inclusion (FI) on remittances in India and China over the 15-year period beginning in the first quarter of 2003 and ending in the fourth quarter of 2019 using augmented ARDL, non-augmented ARDL, and the fourier causality test. The results of stationary tests demonstrate that variables are integrated in a non-linear fashion, indicating that variables become stationary at a level or after the first difference. The long-run connection in the empirical equation was established by the use of combined cointegration and the AARDL test. When looking at the long-run coefficients of EPU and FI, it was shown that there is a positive and statistically significant correlation between remittances inflows and the economy. An asymmetry connection between EPU, FI, and remittances was shown to exist in both the long-run and the short-run when using nonlinear estimates. The causality test also demonstrates that there are directional effects accessible between FDI, GLO, and remittances; however, the direction of these impacts varies depending on the economy. A robustness test was conducted in the research using dynamic OLS, completely modified OLS, and CCR regression.
Keywords:
Remittances; Economic Policy Uncertainty; Financial Inclusion; Augmented ARDL; Fourier Causality test
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