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Remittances, financial development and economic growth in Africa

Author

Listed:
  • Nyamongo, Esman Morekwa
  • Misati, Roseline N.
  • Kipyegon, Leonard
  • Ndirangu, Lydia

Abstract

This study investigates the role of remittances and financial development on economic growth in a panel of 36 countries in Africa over the period 1980–2009. It uses a panel econometrics framework and the main findings of the study are as follows: (1) Remittances appear to be an important source of growth for these countries in Africa during the period under study. (2) Volatility of remittances appears to have a negative effect on the growth of countries in Africa. (3) Remittances appear to be working as a complement to financial development. (4) However, importance of financial development in boosting economic growth appears weak, at least among the countries under study.

Suggested Citation

  • Nyamongo, Esman Morekwa & Misati, Roseline N. & Kipyegon, Leonard & Ndirangu, Lydia, 2012. "Remittances, financial development and economic growth in Africa," Journal of Economics and Business, Elsevier, vol. 64(3), pages 240-260.
    • Handle: RePEc:eee:jebusi:v:64:y:2012:i:3:p:240-260
    DOI: 10.1016/j.jeconbus.2012.01.001
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