Spillover effects of remittances on local public spending in developing economies
We develop a political economy model to study spatial spillover effects of remittances on local public goods with inter-regional positive externalities. Our model postulates that spillovers of remittances are asymmetric with a complex pattern that depends on the degree of externalities of public spe...
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| Format: | Article |
| Language: | English |
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Sciendo
2024-12-01
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| Series: | Economics and Business Review |
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| Online Access: | https://doi.org/10.18559/ebr.2024.4.1229 |
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| author | Rodríguez Raúl Alberto Ponce Rodríguez Benito Alán Ponce Guirado Juan Carlos Medina |
| author_facet | Rodríguez Raúl Alberto Ponce Rodríguez Benito Alán Ponce Guirado Juan Carlos Medina |
| author_sort | Rodríguez Raúl Alberto Ponce |
| collection | DOAJ |
| description | We develop a political economy model to study spatial spillover effects of remittances on local public goods with inter-regional positive externalities. Our model postulates that spillovers of remittances are asymmetric with a complex pattern that depends on the degree of externalities of public spending, the inter-regional inequality of income, and whether local public goods are complementary or substitutes. We develop several tests to be verified empirically, for instance, our model states that if local public goods are substitutes and externalities are moderate, remittances received by households in one locality increase government spending in that locality but reduce spending in other districts. If externalities are significant, remittances affect local public spending in high-income localities but do not affect spending in low-income localities. |
| format | Article |
| id | doaj-art-135f2350c791442991ad584d51d43b3c |
| institution | Kabale University |
| issn | 2450-0097 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Economics and Business Review |
| spelling | doaj-art-135f2350c791442991ad584d51d43b3c2025-01-14T14:22:32ZengSciendoEconomics and Business Review2450-00972024-12-0110473110.18559/ebr.2024.4.1229Spillover effects of remittances on local public spending in developing economiesRodríguez Raúl Alberto Ponce0Rodríguez Benito Alán Ponce1Guirado Juan Carlos Medina2Universidad Autónoma de Ciudad Juárez, Department of Social Science, Ciudad Juárez, MexicoUniversidad Autónoma de Ciudad Juárez, Institute of Engineering and Technology, Ciudad Juárez, MexicoUniversidad Autónoma de Ciudad Juárez, Department of Social Science, Ciudad Juárez, MexicoWe develop a political economy model to study spatial spillover effects of remittances on local public goods with inter-regional positive externalities. Our model postulates that spillovers of remittances are asymmetric with a complex pattern that depends on the degree of externalities of public spending, the inter-regional inequality of income, and whether local public goods are complementary or substitutes. We develop several tests to be verified empirically, for instance, our model states that if local public goods are substitutes and externalities are moderate, remittances received by households in one locality increase government spending in that locality but reduce spending in other districts. If externalities are significant, remittances affect local public spending in high-income localities but do not affect spending in low-income localities.https://doi.org/10.18559/ebr.2024.4.1229remittanceslocal public goodsspilloversinter-regional inequalitystate and local governmentd63f24h7h41 |
| spellingShingle | Rodríguez Raúl Alberto Ponce Rodríguez Benito Alán Ponce Guirado Juan Carlos Medina Spillover effects of remittances on local public spending in developing economies Economics and Business Review remittances local public goods spillovers inter-regional inequality state and local government d63 f24 h7 h41 |
| title | Spillover effects of remittances on local public spending in developing economies |
| title_full | Spillover effects of remittances on local public spending in developing economies |
| title_fullStr | Spillover effects of remittances on local public spending in developing economies |
| title_full_unstemmed | Spillover effects of remittances on local public spending in developing economies |
| title_short | Spillover effects of remittances on local public spending in developing economies |
| title_sort | spillover effects of remittances on local public spending in developing economies |
| topic | remittances local public goods spillovers inter-regional inequality state and local government d63 f24 h7 h41 |
| url | https://doi.org/10.18559/ebr.2024.4.1229 |
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