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Remittances, financial development and economic growth in Africa

  • Nyamongo, Esman Morekwa
  • Misati, Roseline N.
  • Kipyegon, Leonard
  • Ndirangu, Lydia
Registered author(s):

    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.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0148619512000021
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    Article provided by Elsevier in its journal Journal of Economics and Business.

    Volume (Year): 64 (2012)
    Issue (Month): 3 ()
    Pages: 240-260

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    Handle: RePEc:eee:jebusi:v:64:y:2012:i:3:p:240-260
    DOI: 10.1016/j.jeconbus.2012.01.001
    Contact details of provider: Web page: http://www.elsevier.com/locate/jeconbus

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    10. Rao, B.Bhaskara & Hassan, Gazi, 2009. "A panel data analysis of the growth effects of remittances," MPRA Paper 18021, University Library of Munich, Germany.
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    15. Misati, Roseline Nyakerario & Nyamongo, Esman Morekwa, 2011. "Financial development and private investment in Sub-Saharan Africa," Journal of Economics and Business, Elsevier, vol. 63(2), pages 139-151, March.
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    17. Sanjeev Gupta & Catherine A Pattillo & Smita Wagh, 2007. "Impact of Remittances on Poverty and Financial Development in Sub-Saharan Africa," IMF Working Papers 07/38, International Monetary Fund.
    18. Bagehot, Walter, 1873. "Lombard Street: A Description of the Money Market," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number bagehot1873.
    19. Easterly, W & Levine, R, 1996. "Africa's Growth Tragedy : Policies and Ethnic Divisions," Papers 536, Harvard - Institute for International Development.
    20. Christopher Woodruff, 2007. "Mexican microenterprise investment and employment : the role of remittances," INTAL Working Papers 1452, Inter-American Development Bank, INTAL.
    21. Dean Yang, 2006. "International Migration, Remittances, and Household Investment: Evidence from Philippine Migrants' Exchange Rate Shocks," NBER Working Papers 12325, National Bureau of Economic Research, Inc.
    22. Adams, Richard H. Jr., 2004. "Remittances and poverty in Guatemala," Policy Research Working Paper Series 3418, The World Bank.
    23. Ralph Chami & Connel Fullenkamp & Samir Jahjah, 2005. "Are Immigrant Remittance Flows a Source of Capital for Development?," IMF Staff Papers, Palgrave Macmillan, vol. 52(1), pages 55-81, April.
    24. Ralph Chami & Adolfo Barajas & Anjali Garg & Connel Fullenkamp, 2010. "The Global Financial Crisis and Workers' Remittances to Africa; What's the Damage?," IMF Working Papers 10/24, International Monetary Fund.
    25. Raghuram G. Rajan & Arvind Subramanian, 2005. "What Undermines Aid's Impact on Growth?," NBER Working Papers 11657, National Bureau of Economic Research, Inc.
    26. Misati, Roseline Nyakerario & Nyamongo, Esman Morekwa, 2011. "Financial development and private investment in Sub-Saharan Africa," Journal of Economics and Business, Elsevier, vol. 63(2), pages 139-151.
    27. Woodruff, Christopher & Zenteno, Rene, 2007. "Migration networks and microenterprises in Mexico," Journal of Development Economics, Elsevier, vol. 82(2), pages 509-528, March.
    28. Amuedo-Dorantes, Catalina & Pozo, Susan, 2004. "Workers' Remittances and the Real Exchange Rate: A Paradox of Gifts," World Development, Elsevier, vol. 32(8), pages 1407-1417, August.
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