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Caribbean; economic development; remittances; financial development; ARDL; bounds test

Remittances and Economic Development: Evidence from the Caribbean

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This article empirically examines whether and how remittances impact economic development in eleven Caribbean countries over the period 1975–2011. We employ the bounds test and ARDL framework to assess the existence of long-run relationships and causality, and adopt a countryspecific approach to accommodate differences among countries. We find evidence of heterogeneous long-run causal relationships in seven countries.

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