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Remittances, Political Stability and Economic Development: Empirical Evidence from OIC Countries

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Islamic Economies

Part of the book series: Palgrave CIBFR Studies in Islamic Finance ((PCSIF))

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Abstract

Using data from 16 Organisation of Islamic Cooperation (OIC) countries for the 20-year period 1993–2012, we examine the role of remittances and political stability on economic development. We also examine the interaction of political stability and remittances to determine whether or not stable political conditions are expected to increase the effect of remittances. Our results can be summarized as follows: (1) remittances have no significant effect on OIC economies, (2) democracy is a more effective form of government than autocracy/dictatorship, and (3) political stability reduces the effects of remittances on development.

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Notes

  1. 1.

    The average economic growth in OIC countries was 3.8% in 2014.

  2. 2.

    We employed Random effect estimations.

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Authors and Affiliations

  1. International Centre for Education in Islamic Finance (INCEIF), Kuala Lumpur, 59100,, Malaysia

    Mohsin Ali & Wajahat Azmi

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  1. Mohsin Ali
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  2. Wajahat Azmi
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Correspondence to Mohsin Ali .

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Editors and Affiliations

  1. Sunway University Business School, Sunway University, Selangor, Malaysia

    Nafis Alam

  2. Suleman Dawood School of Business, Lahore University of Management Sciences, Lahore, Pakistan

    Syed Aun R. Rizvi

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Ali, M., Azmi, W. (2017). Remittances, Political Stability and Economic Development: Empirical Evidence from OIC Countries. In: Alam, N., Rizvi, S. (eds) Islamic Economies. Palgrave CIBFR Studies in Islamic Finance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-47937-8_3

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  • DOI: https://doi.org/10.1007/978-3-319-47937-8_3

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-319-47936-1

  • Online ISBN: 978-3-319-47937-8

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