Introduction Remittances are a new financial phenomena and o

Introduction Remittances are a new financial phenomena and one of the main important sources of incomes based on it seize and economic impact in the world. Data from (World Bank, 2014) indicates that global remittance is $430 billion dollar in 2011 and remittance is 0.31% of global GDP in 2009. The impact of remittance on economy system is more profound in developing countries because, they receive $307.1 billion of the total N416 billion inward remittances, which is about 74 percent. Remittance is also 27 percent of the GDP of developing countries. According to the World Bank, remittances flows to the developing world have reached USD 414 billion in 2013 (up 6.3 percent over 2012), and are now, behind foreign direct investment, the second largest source of external financial flows to developing countries. Given the 232 million international migrants and the almost 70 million internal migrants, the earnings generated and transferred by migrants are projected to reach USD 540 billion by 2016. Importance of remittances is increasing potentially and they are becoming one of main important sources of foreign financial flows, especially in developing countries, both in size and growth rate. The true size of remittances as well as unrecorded flows through formal and informal LY 2157299 is believed to be significantly large (Fig. 1 and Graphs 1–3).
Empirical literature review
An empirical model of economic growth with remittances
Evaluation of residuals of fixed effects method
Ljung Box test
Conclusions
Introduction Since the times of neoclassic economists, microeconomics happiness is defined in terms of utility maximization of material consumption and rational decisions. Based on an axiomatic approach and applying a revealed preference technique we aim at assessing personal wellbeing levels according to tangible goods and services (Guo and Hu, 2011). However, according to Thaler’s conception (1992), it is questionable that such a subjective issue as utility can be measured in objective terms. In this sense, Frey and Stutzer (2008), Diener (2005) and other authors advocate that wellbeing indicators are subjective, as the Revealed Preference theory is valid as long as individuals act in a totally rational way. However, what it is perceived in practical terms is individuals with limited rationale and unaware of their choices. Besides, this theory does not consider preferences of people with no income to spend. Therefore, Guo and Hu (2011) argue that there is vast literature that questions the validity of the cardinal utility approach. For these authors, the ordinal approach is subjective, even if it is criticized by traditional economists. Due to its little scientificity, it is capable of capturing multiple factors that result in individual wellbeing. In the end, according to Braun and Hussain (2009) sustainable happiness is something multidimensional that does not only depend on financial indicators. Veenhoven (2007) suggests that as somebody’s life may have several environmental effects, the number of utilities is almost endless. Seeking to answer or prove some commonplace affirmations such as “money does not bring happiness” or “a short happy life is better than a long unhappy one”, a series of studies have been developed in recent years. Research developed by Guo and Hu (2011), Chuerattanakorn (2007), Veenhoven (2007), Di Tella and Macculloch (2005) and Di Tella et al. (2003) go in that direction. Other motivations lay in the recognition that this issue has been widely studied by researchers and public managers worldwide and the belief that happiness studies may become important tools to guide public policies seeking to improve wellbeing. In the end, if happiness must be considered as a ‘public good”, as Tobgay et al. (2011) suggests, then governments have the relevant attribution to offer the society those factors capable of granting more satisfactory living conditions.