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Crowding-out (or -in) effect in transition economies: Kyrgyzstan case

Cunus GANİEV

Purpose: The crowding-out and crowding-in effects have been at the core of arguments among economists regarding the influence of government spending on private investment. This study aims to examine the crowding-out (or -in) effect of public spending on private investment in the transition economy of Kyrgyzstan. Design/methodology/approach: The empirical model is an autoregressive distributed lag (ARDL) and the vector autoregression approach (VAR). Monthly data from 2005 to 2013 of the private investment, government expenditures, remittances from abroad and broad money data were used in the em ...Более

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Remittances and labor supply of the left-behind youth: Evidence from Kyrgyzstan

Kamalbek KARIMŞAKOV | Burulça SULAYMANOVA | Raziyahan ABDİYEVA

This paper examines whether remittances from international migration impact on the occupational choice of left-behind youth in Kyrgyzstan. Labor supply is analyzed both at the extensive and intensive margins using cross-sectional data for 2011. To overcome endogeneity concerns, an instrumental variable approach was implemented. Findings demonstrate that migration, rather than remittances, pushes the left-behind youth to become unpaid family workers. This is explained by the substitution effect as the youth left behind are called upon to replace the migrant labor. Moreover, this effect is heter ...Более

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Remittances and Economic Growth in Transition Countries

Kamalbek KARIMŞAKOV

Migrants' remittances have become an important development tool because they can raise income and reduce poverty rates in developing countries. These remittances might also promote development by providing funds that recipients can spend on education or health care or invest in entrepreneurial activities. Thus, workers' remittances are a steadily growing external source of capital for developing countries. In spite of the fact that importance of remittances in total international capital flows are increasing, the relationship between remittances and growth has not been adequately studied. The ...Более

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