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Remittances led growth in West Africa Monetary Zone (WAMZ)

Author

Listed:
  • Ismail O. Fasanya

    (Federal University of Agriculture, Abeokuta, Nigeria)

  • Sulaimon Baruwa

    (Fountain University, Osogbo)

Abstract

This study explores the significance of remittances on the economic growth of six (6) WAMZ Countries within a non-linear augmented conventional neoclassical growth framework using an unbalanced panel data spanning from 1970 to 2011. The main contribution of this paper is the use of heterogenous panel cointegration method to estimate remittances-growth nexus in the WAMZ region. The paper also considers two prominent periods of policy restructuring within the member countries in order to confirm the choice of the heterogenous panel cointegration method. Our findings indicate that remittances have a positive and significant effect on the growth of WAMZ Countries. We found that a sound macroeconomic policy is sine qua non for the effective contribution of remittances to sustainable growth. Also, we found that the incessant socio-political crisis evident in the WAMZ region has crippled the effectiveness of remittances in these countries.

Suggested Citation

  • Ismail O. Fasanya & Sulaimon Baruwa, 2015. "Remittances led growth in West Africa Monetary Zone (WAMZ)," Economics Bulletin, AccessEcon, vol. 35(4), pages 2374-2381.
    • Handle: RePEc:ebl:ecbull:eb-15-00238
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Growth; Remittances; Panel Data;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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