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Financial development, remittances and economic growth: A threshold analysis

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  • James Atta Peprah
  • Isaac Kwesi Ofori
  • Abel Nyarko Asomani

Abstract

Sources of economic growth in Ghana have not been clear. Several studies have contributed to the finance and growth literature with little attention on remittances and the joint effect of financial sector development and remittances. This paper uses macrodata to examine the linkages between financial development, remittances and economic growth in Ghana. We estimate a dynamic heterogeneous Autoregressive Distributed Lag (ARDL) model to show that financial booms are not, in general, growth-enhancing, and a certain level of financial development can drag down economic growth in the long term and the combined effect of financial development and remittances should be of concern to policymakers.

Suggested Citation

  • James Atta Peprah & Isaac Kwesi Ofori & Abel Nyarko Asomani, 2019. "Financial development, remittances and economic growth: A threshold analysis," Cogent Economics & Finance, Taylor & Francis Journals, vol. 7(1), pages 1625107-162, January.
    • Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1625107
    DOI: 10.1080/23322039.2019.1625107
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    More about this item

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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