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The impact of remittances on economic growth: empirical evidence from South Africa

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  • S. Nyasha
  • N.M. Odhiambo

Abstract

In this paper, we have empirically examined the impact of remittances on economic growth in South Africa over the period from 1970 to 2019. The study was motivated by the conflicting empirical findings that have emerged in the literature on the impact of remittance on economic growth in various countries. The study was also motivated by the need to find an empirical backing on the assertion that remittances are good for economic growth in developing countries. Using the autoregressive distributed lag (ARDL) bounds testing approach, the empirical results, contrary to expectations, have revealed that in South Africa, remittances have a negative impact on economic growth, irrespective of whether the regression analysis is conducted in the long run, or in the short run.

Suggested Citation

  • S. Nyasha & N.M. Odhiambo, 2022. "The impact of remittances on economic growth: empirical evidence from South Africa," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 15(2), pages 254-272.
    • Handle: RePEc:ids:ijtrgm:v:15:y:2022:i:2:p:254-272
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    Cited by:

    1. Li, Shanshan & Long, Fang & Long, Litao, 2022. "Resources curse and sustainable development revisited: Evaluating the role of remittances for China," Resources Policy, Elsevier, vol. 79(C).
    2. Khan, Yasir & Liu, Fang & Hassan, Taimoor, 2023. "Natural resources and sustainable development: Evaluating the role of remittances and energy resources efficiency," Resources Policy, Elsevier, vol. 80(C).
    3. Ma, Yubo & Wang, Fei, 2023. "Dutch disease via remittances and natural resources: A perspective of global economy," Resources Policy, Elsevier, vol. 80(C).

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