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Remittances and economic growth: A study of Guyana

  • Kumar, Ronald Ravinesh

Using an augmented Solow framework and an ARDL bounds test for cointegration, we explore the short- and long-run effects of remittances, aid and financial deepening on growth in Guyana using annual data for the period 1982–2010. The results show that remittances have a positive and significant effect both in the short and the long run. Aid has a negative effect in the long run and financial deepening is not statistically significant. The Granger-causality test reveals that capital stock, aid and financial deepening cause remittances inflow in Guyana.

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File URL: http://www.sciencedirect.com/science/article/pii/S093936251300040X
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Article provided by Elsevier in its journal Economic Systems.

Volume (Year): 37 (2013)
Issue (Month): 3 ()
Pages: 462-472

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Handle: RePEc:eee:ecosys:v:37:y:2013:i:3:p:462-472
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