Impact of development aid on remittances sent from donor-countries

Abstract

This article examines the impact of the aggregate development aid supplied by donors at the aggregate level of remittances sent from donor-countries. The empirical analysis focuses on 22 donor-countries over the period 2000- 2015. It uses instrumental variables approaches and provide evidence that donors' overall aid supply could be substitute or complementary with remittances paid flows, depending on the level of remittances sent from donor-countries, as well as on the share of migrants' stock on the total population of the host-country.