International Journal of Commerce and Economics

International Journal of Commerce and Economics


International Journal of Commerce and Economics
International Journal of Commerce and Economics
2019, Vol. 1, Issue 2
Remittances as a determinant of import function: A time series analysis

Kajenthini Ganeshamoorthy

The time series analysis focuses on establishing a relationship between remittances and import in the economy of Sri Lanka. The present study’s objective, therefore, examines the relationship between remittances inflow and imports in the case of Sri Lanka. Empirical analyses are carried out with the time series econometric techniques encompasses Johansen cointegration test, Vector Auto-Regressive (VAR) analysis and Granger-causality test using time series data over the period of 1977-2017. The main finding is that there is a bidirectional causality relationship between imports and remittances in Sri Lanka. Despite, there is the absence of long-run determination between the two, in the short-run, foreign remittances determine imports. Therefore, it should necessary to take appropriate strategies and migration policy changes to convert the utilization of foreign remittance towards investment.
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How to cite this article:
Kajenthini Ganeshamoorthy. Remittances as a determinant of import function: A time series analysis. International Journal of Commerce and Economics, Volume 1, Issue 2, 2019, Pages 15-21
International Journal of Commerce and Economics International Journal of Commerce and Economics