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Remittances and Economic Growth Nexus: Empirical Evidence from Nigeria, Senegal and Togo

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  • Joseph Dery Nyeadi
  • Nuhu Yidana
  • Mohammed Imoro

Abstract

Remittances inflow is one of the major sources of capital flows in the world. Though developing countries and especially Sub-Saharan Africa does not have a bigger share of this capital flow, remittances is noted to be very useful in promoting household welfare and health in developing countries. What is not certain is whether or not remittances lead to economic growth. Set out to investigate the causal link between remittances and economic growth in three of the leading remittances recipients in West Africa i.e. Nigeria, Senegal and Togo, the study used Grangercausality and co-integration tests under the Vector Autoregressive Regression (VAR) framework. The time series data used here is made of an annual data from 1980-2012. It is realized from the study that there is a unidirectional causal link in Nigeria and Senegal. Remittances are found to lead to economic growth while economic growth does not lead to remittances inflows. There is however no causal link between remittances and economic growth in Togo.

Suggested Citation

  • Joseph Dery Nyeadi & Nuhu Yidana & Mohammed Imoro, 2014. "Remittances and Economic Growth Nexus: Empirical Evidence from Nigeria, Senegal and Togo," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(10), pages 158-172, October.
    • Handle: RePEc:hur:ijarbs:v:4:y:2014:i:10:p:158-172
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    Cited by:

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    4. Adekunle, Wasiu & Sulaimon, Mubaraq, 2018. "A Re-examination of the Relationship between Foreign Capital Flows and Economic Growth in Nigeria," MPRA Paper 87754, University Library of Munich, Germany.
    5. Oteng-Abayie, Eric & Awuni, Prosper Ayinbilla & Adjei, Thomas Kwame, 2020. "The Impact of Inward Remittances on Economic Growth in Ghana," African Journal of Economic Review, African Journal of Economic Review, vol. 8(3), November.
    6. Johnson A. Atan & Godwin Essang Esu, 2018. "Macroeconomic Drivers of Remittances and the Implication for Economic Growth in Nigeria," Applied Economics and Finance, Redfame publishing, vol. 5(4), pages 40-52, July.
    7. Eunice Adu-Darko & Emmanuel K Aidoo, 2022. "Government Stability in the Remittance-Economic Growth Link in Ghana," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 14(1), pages 1-14.
    8. Abdul-Malik Abdulai, 2023. "The impact of remittances on economic growth in Ghana: An ARDL bound test approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(2), pages 2243189-224, June.

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