Collinearity in growth regressions: The example of worker remittances

Ziesemer, Thomas (2009). Collinearity in growth regressions: The example of worker remittances. UNU-MERIT.

Document type:
Report

Metadata
Documents
Versions
Statistics
  • Attached Files (Some files may be inaccessible until you login with your UNU Collections credentials)
    Name Description MIMEType Size Downloads
    wp2009-020.pdf PDF application/pdf 161.99KB
  • Author Ziesemer, Thomas
    Title Collinearity in growth regressions: The example of worker remittances
    Publication Date 2009
    Publisher UNU-MERIT
    Abstract The sign of worker remittances in growth regressions is heavily disputed in the literature. Comparing two growth regressions with different signs for the remittance variable we show that collinearity with the lagged dependent variable might indicate that collinearity should be investigated comprehensively and might lead to a change in specifications which differ in the variance inflation factors (VIF). In our case the variance inflation factor for remittances depends on the use of a five or one-year lag of the lagged dependent. In the regression with a VIF below ten, the standard critical value, the sign of remittances is positive.
    Keyword Growth
    Remittances
    JEL F24
    O11
    Copyright Holder UNU-MERIT
    Copyright Year 2009
    ISSN 1871-9872
  • Versions
    Version Filter Type
  • Citation counts
    Google Scholar Search Google Scholar
    Access Statistics: 568 Abstract Views, 189 File Downloads  -  Detailed Statistics
    Created: Wed, 11 Dec 2013, 16:15:41 JST