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International remittances, poverty and growth into WAEMU countries: evidence from panel cointegration approach

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  • Joseph Siani

    (IESEG School of Management)

Abstract

This paper applies the panel unit root, panel cointegration and panel vector error-correction Granger causality tests in a panel of the eight West African Economic and Monetary Union (WAEMU) countries and shows that in the short-run, there is evidence of (i) a bidirectional causal relationship between economic growth and poverty; (ii) a unidirectional causal relationship from remittances to poverty; and (iii) a unidirectional causal relationship from economic growth to remittances. Our results further suggest that in the long-run, both economic growth and remittances jointly Granger-cause poverty and that it takes more than fifteen years for poverty to converge to its long-run equilibrium in response to changes in economic growth and remittances.

Suggested Citation

  • Joseph Siani, 2020. "International remittances, poverty and growth into WAEMU countries: evidence from panel cointegration approach," Economics Bulletin, AccessEcon, vol. 40(2), pages 1446-1456.
    • Handle: RePEc:ebl:ecbull:eb-20-00139
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    Cited by:

    1. Zeynep Gizem Can & Hakki Ciftci, 2022. "International Remittances and Poverty: Blessing or Curse?," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 70(6), pages 544-561, June.

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    More about this item

    Keywords

    Remittances; Economic growth; Poverty; Cointegration analysis; Vector error-correction model; Short-run causality; Long-run causality; WAEMU countries;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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