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Remittances and growth in Africa: Does financial development and institutional quality matter?

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  • Yosra Saidi

    (University of Jendouba, Faculty of Law, Economics and Management Sciences of Jendouba,Tunisia)

Abstract

This paper examines the influence of financial development and institutional quality in the relationship between remittances and economic growth for African countries over the period 2000-2020. By using a dynamic panel threshold model, the results show that there is a statistically positive relationship between remittances and economic growth above the threshold of 5.86%, above which remittances increase economic growth in African countries. This paper supports the view that remittances have a positive effect on growth only when the financial sector is strong and when there is a good institutional quality

Suggested Citation

  • Yosra Saidi, 2024. "Remittances and growth in Africa: Does financial development and institutional quality matter?," Economics Bulletin, AccessEcon, vol. 44(1), pages 163-172.
    • Handle: RePEc:ebl:ecbull:eb-23-00253
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    More about this item

    Keywords

    Remittances; Economic Growth; Dynamic threshold panel data; Africa;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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