The Effect of Remittance, Consumption, and FDI on Economic Growth in ASEAN Countries

Mega Mariska, Lies Maria Hamzah, Arivina Ratih


One of the main indicators seen in reviewing the relationship between international workers and economic growth is remittances. Remittances obtained from workers abroad are one of the major sources of finance for developing countries. Remittances are also a source of finance in increasing migrant household incomes which encourage improved consumption which will affect economic growth. This study was conducted to explore the impact of migrant remittances, consumption and FDI on economic growth in 10 ASEAN countries using annual panel data from 2015-2019. This study uses panel data regression analysis with the Random Effect Model (REM) approach. The results showed that remittances, consumption and FDI positively and significantly contributed to economic growth in 10 ASEAN countries. Significant contribution of migrant remittances in economic growth if their use is directed to more productive sectors such as use in the investment sector can help the economies of ASEAN countries to maintain and increase economic growth. The government needs to improve the quality of migrant workers through education because a high level of education will affect the level of wages received by migrants and will have an impact on increasing remittances. The limitation in this study is the use of limited data, for 2020 it is not included in the data set used in the analysis. For this reason, further research should use 2020 data because in 2020 there be a new phenomenon, namely COVID-19 which can be traced to the impact of this phenomenon on remittances. 

Keywords: Remittances, Migrant, Economic Growth, Panel Data

Full Text:



Abduvaliev, M., & Bustillo, R. (2020). Impact of remittances on economic growth and poverty reduction amongst CIS countries. Post-Communist Economies, 32(4), 525–546.

Abida, Z., & Sghaier, I. M. (2014). Remittances, Financial Development and Economic Growth: The Case of North African Countries. The Romanian Economic Journal, XVII(51), 137–170.

Adenutsi, D. E. (2011). Financial development, international migrant remittances and endogenous growth in Ghana. Studies in Economics and Finance, 28(1), 68–89.

Afriska, A. E., Zulham, T., & Dawood, T. C. (2019). Pengaruh Tenaga Kerja Indonesia Di Luar Negeri Dan Remitansi Terhadap Pdb Per Kapita Di Indonesia. Jurnal Perspektif Ekonomi Darussalam, 4(2), 231–248.

Akay, A., Giulietti, C., Robalino, J. D., & Zimmermann, K. F. (2014). Remittances and well-being among rural-to-urban migrants in China. Review of Economics of the Household, 12(3), 517–546.

Cooray, A. (2012). The impact of migrant remittances on economic growth: Evidence from south asia. Review of International Economics, 20(5), 985–998.

Dewi, E., Amar, S., & Sofyan, E. (2013). Analisis Pertumbuhan Ekonomi, Investasi, dan Konsumsi di Indonesia. Jurnal Kajian Ekonomi, I(02), 176–193.

Gujarati, D. (2013). Ekonometrika Dasar. Jakarta : Erlangga.

Meyer, D., & Shera, A. (2017). The impact of remittances on economic growth: An econometric model. EconomiA, 18(2), 147–155.

Permatasari, S. I., & Sugiharti, L. (2017). Dampak Remitansi Tenaga Kerja Indonesia Terhadap Distribusi Pendapatan Rumah Tangga : Analisis Sistem Neraca Sosial Ekonomi Indonesia (SNSE) 2008. Jurnal Ilmu Ekonomi Terapan, 1(2), 51–64.

Shera, A., & Meyer, D. (2013). Remittances and their impact on economic growth. Periodica Polytechnica Social and Management Sciences, 21(1), 3–19.

Tangtipongkul, K., & Khiev, V. (2019). The effect of remittance on economic growth in Cambodia. Journal of Population and Social Studies, 27(3), 232–246.

Ukhtiyani, K., & Indartono, S. (2020). Impacts of Indonesian Economic Growth: Remittances Migrant Workers and FDI. Jejak, 13(2), 280–291.

Widarjono, A. (2013). Ekonometrika Pengantar dan Aplikasi : UPP STIM YKPN.

Winantyo, R., Saputra, R. D., & Fitriani, S. (2015). Masyarakat Ekonomi ASEAN (MEA), Memperkuat sinergi ASEAN di tengah kompetisi global. Jakarta : PT. Alex Media Koputindo.



  • There are currently no refbacks.


Print ISSN : 1907-6827   Online ISSN : 2620-8849

Indexed by :



Partnership with Professional Association: