Remittances and growth in Sub-Saharan African countries: Evidence from panel causality test

Ibrahim Ahamada and Dramane Coulibaly

PSE-Ecole d'économie de Paris (Postprint) from HAL

Abstract: This paper examines the causality between remittances and economic growth in Sub-Saharan African (SSA) countries. We employ the panel Granger causality testing approach that is based on seemingly unrelated regressions systems and Wald tests with country-specific bootstrap critical values. Using annual data over the period 1980-2007 for 20 SSA countries, we find that in any SSA country, there is no causality between remittances and growth. An explanation of why remittances do not increase growth in SSA countries is given by the causality test that shows that remittances do not increase physical capital investment.

Keywords: causality; Sub-Saharan Africa; growth; remittances (search for similar items in EconPapers)
Date: 2013-04
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Citations: View citations in EconPapers (39)

Published in Journal of International Development, 2013, 25 (3), pp.310-324. ⟨10.1002/jid.2830⟩

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Related works:
Journal Article: REMITTANCES AND GROWTH IN SUB‐SAHARAN AFRICAN COUNTRIES: EVIDENCE FROM A PANEL CAUSALITY TEST (2013)
Working Paper: Remittances and growth in Sub-Saharan African countries: Evidence from panel causality test (2013)
Working Paper: Remittances and growth in Sub-Saharan African countries: Evidence from panel causality test (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:hal-00674688

DOI: 10.1002/jid.2830

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