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Economic Growth, Exchange Rate and Remittance Nexus: Evidence from Africa

Author

Listed:
  • Adedoyin Isola Lawal

    (Department of Economics, Bowen University, Iwo 232101, Nigeria)

  • Afees Adebare Salisu

    (Centre for Econometric & Allied Research, University of Ibadan, Ibadan 200132, Nigeria
    Department of Economics, University of Pretoria, Pretoria 0083, South Africa)

  • Abiola John Asaleye

    (Department of Economics, Bowen University, Iwo 232101, Nigeria)

  • Ezeikel Oseni

    (Bank of Industry, Lagos 102273, Nigeria
    Department of Finance, University of Lagos, Lagos 101212, Nigeria)

  • Bukola Bose Lawal-Adedoyin

    (Department of Accounting and Finance, Landmark University, Omu-Aran 251103, Nigeria)

  • Samuel Olatunde Dahunsi

    (Directorate of Research, Bowen University, Iwo 232101, Nigeria)

  • Emmanuel Oluwasola Omoju

    (National Institute for Legislative and Democratic Studies (NILDS), Abuja 904101, Nigeria)

  • Abigail Oyeronke DickTonye

    (Department of Economics, Bowen University, Iwo 232101, Nigeria)

  • Elizabeth Bolatito Ogunwole

    (Department of Economics, Bowen University, Iwo 232101, Nigeria)

  • Abiola Ayopo Babajide

    (Department of Banking and Finance, Covenant University, Ota 112104, Nigeria)

Abstract

This paper examined the nexus between economic growth and exchange rate, remittances, trade, and agricultural output based on data sourced from 1980 to 2018 for 10 selected African economies. We employed both the Dumitrescu and Hurlin time-domain Granger causality test and the Croux and Reusens frequency domain Granger causality test. Results from the time-domain test suggests that causality only exists between economic growth and both exchange rate and trade, with no significant relationship between economic growth and both remittances and agricultural output. When we employed frequency domain model in our analysis, the results suggested that there is a bi-directional temporary and permanent causality between economic growth and exchange rate, trade, agriculture, and remittances. Our results suggest the validity of both the J-Curve and Marshall–Lerner hypotheses in the studied economies. Our study offers some relevant policy implications.

Suggested Citation

  • Adedoyin Isola Lawal & Afees Adebare Salisu & Abiola John Asaleye & Ezeikel Oseni & Bukola Bose Lawal-Adedoyin & Samuel Olatunde Dahunsi & Emmanuel Oluwasola Omoju & Abigail Oyeronke DickTonye & Eliza, 2022. "Economic Growth, Exchange Rate and Remittance Nexus: Evidence from Africa," JRFM, MDPI, vol. 15(6), pages 1-13, May.
    • Handle: RePEc:gam:jjrfmx:v:15:y:2022:i:6:p:235-:d:824319
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    References listed on IDEAS

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    Cited by:

    1. Adedoyin Isola Lawal, 2023. "The Nexus between Economic Growth, Energy Consumption, Agricultural Output, and CO 2 in Africa: Evidence from Frequency Domain Estimates," Energies, MDPI, vol. 16(3), pages 1-27, January.
    2. Mesagan, Ekundayo Peter & Alimi, Olorunfemi Yasiru & Vo, Xuan Vinh, 2022. "The asymmetric effects of exchange rate on trade balance and output growth," The Journal of Economic Asymmetries, Elsevier, vol. 26(C).

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