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Impact of Remittances on Economic Growth in Africa: An Econometric Analysis

Author

Listed:
  • Md. Zobayer Bin Amir

    (Department of Economics, Western Illinois University, USA)

  • Md. Khaled Bin Amir

    (Department of Banking and Insurance, University of Dhaka, Bangladesh)

Abstract

We propose that natural disasters enable frequent and severe market manipulation. Remittances have impact on economic growth of African nations. We tested this proposition by employing panel data from 42 African nations from 2001 to 2020.The fixed effect model is representative of all models used in this study. The unemployment rate (UR) is used as an instrumental variable in the Generalized Momentum Method (GMM) estimation to reduce the endogeneity problem. This study suggests that remittances have a significant positive impact on the economic growth of African nations.

Suggested Citation

  • Md. Zobayer Bin Amir & Md. Khaled Bin Amir, 2024. "Impact of Remittances on Economic Growth in Africa: An Econometric Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 14(1), pages 64-72, January.
    • Handle: RePEc:eco:journ1:2024-01-6
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    References listed on IDEAS

    as
    1. Ralph Chami & Connel Fullenkamp & Samir Jahjah, 2005. "Are Immigrant Remittance Flows a Source of Capital for Development?," IMF Staff Papers, Palgrave Macmillan, vol. 52(1), pages 55-81, April.
    2. Michael T. Gapen & Mr. Ralph Chami & Mr. Peter J Montiel & Mr. Adolfo Barajas & Connel Fullenkamp, 2009. "Do Workers’ Remittances Promote Economic Growth?," IMF Working Papers 2009/153, International Monetary Fund.
    3. Arusha Cooray, 2012. "The Impact of Migrant Remittances on Economic Growth: Evidence from South Asia," Review of International Economics, Wiley Blackwell, vol. 20(5), pages 985-998, November.
    4. Mubinzhon Abduvaliev & Ricardo Bustillo, 2020. "Impact of remittances on economic growth and poverty reduction amongst CIS countries," Post-Communist Economies, Taylor & Francis Journals, vol. 32(4), pages 525-546, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Remittances; Economic Growth; Africa; Migration; GDP;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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