The Role of Workers’ Remittances in Development of Jordanian Banking Sector
International Journal of Business and Economics Research
Volume 5, Issue 6, December 2016, Pages: 227-234
Received: Oct. 26, 2016; Accepted: Nov. 7, 2016; Published: Dec. 2, 2016
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Author
Alaaeddin Al-Tarawneh, Department of Business Economics, The University of Jordan, Amman, Jordan
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Abstract
This paper examines the impact of workers’ remittances on a key indicator of banking sector development using Jordanian data over the period 1964 to 2013. The results are obtained using cointegration analysis depending on the E-G procedure test within the ECM framework. The study has found evidence of significant positive effects of remittances on the credit to the private to GDP ratio. Any increase in the workers' remittances, increases the level of banking sector development. In addition, a test for asymmetric relationship between variables is implemented, and results show that this relation does not exist.
Keywords
Workers' Remittances, Banking Sector Development, Engle-Granger Procedure, ECM, Asymmetric Cointegration Test
To cite this article
Alaaeddin Al-Tarawneh, The Role of Workers’ Remittances in Development of Jordanian Banking Sector, International Journal of Business and Economics Research. Vol. 5, No. 6, 2016, pp. 227-234. doi: 10.11648/j.ijber.20160506.16
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Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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