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Does Financial Development in Relation to Remittances influence Economic Growth in Sub-Saharan Africa?

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  • Christiana Afriyie Manu
  • Peter Arhenful
  • Mathew Owusu-Mensah

Abstract

This study investigates the influence of financial development on the relationship between remittances and economic growth within the Sub-Saharan Africa region. The study utilised panel data encompassing 42 countries, spanning the time frame 1980 to 2021. The research employed a cross-sectional augmented panel unit root test, as well as the Im-Pesaran-Shin unit-root test, to conduct the unit root analysis. The regression estimations employed the Pooled Mean Group and Mean Group/ARDL methodologies. The research findings demonstrate a significant association between the development of financial systems and sustained economic growth over an extended period. The findings from the empirical analysis indicate that there exists a substitutive relationship between financial development and the association between remittances and economic growth. The study proposes that it would be advantageous for financial policies in the Sub-Saharan Africa (SSA) region to give priority to the implementation of efficient financial reforms with the goal of improving the overall depth of the financial sector.Keywords: Remittances, Financial development, ARDL, Economic growth, Sub-Saharan Africa.

Suggested Citation

  • Christiana Afriyie Manu & Peter Arhenful & Mathew Owusu-Mensah, 2023. "Does Financial Development in Relation to Remittances influence Economic Growth in Sub-Saharan Africa?," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 13(6), pages 1-17.
    • Handle: RePEc:spt:admaec:v:13:y:2023:i:6:f:13_6_17
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    References listed on IDEAS

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