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Remittances and Economic Growth: Panel VAR

Author

Listed:
  • Fatma Zaarour

    (IHEC, LaREMFiQ, University of Sousse
    University of Sousse)

  • Ghlama Haddad

    (IHEC, LaREMFiQ, University of Sousse
    University of Sousse)

  • Adnene Ajimi

    (IHEC, LaREMFiQ, University of Sousse
    University of Sousse)

Abstract

Remittances became a major source of financing for developing countries; the purpose of this study is to assess the impact of remittances on economic growth by highlighting different transmission channels. The estimates are made over the period extended from 1980 to 2016 with the model Panel VAR. This estimate indicates that an increase in remittances results in an improvement in economic growth and that remittances increase following an economic shock. Thus, the results allow drawing no definitive conclusions about the channels (consumption and population growth channel), but they confirm that the remittances can increase investment.

Suggested Citation

  • Fatma Zaarour & Ghlama Haddad & Adnene Ajimi, 2025. "Remittances and Economic Growth: Panel VAR," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(3), pages 11045-11062, September.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:3:d:10.1007_s13132-024-02227-x
    DOI: 10.1007/s13132-024-02227-x
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    Keywords

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    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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