Remittances and growth in Africa: Does financial development and institutional quality matter?

Yosra Saidi ()
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Yosra Saidi: University of Jendouba, Faculty of Law, Economics and Management Sciences of Jendouba,Tunisia

Economics Bulletin, 2024, vol. 44, issue 1, 163 - 172

Abstract: This paper examines the influence of financial development and institutional quality in the relationship between remittances and economic growth for African countries over the period 2000-2020. By using a dynamic panel threshold model, the results show that there is a statistically positive relationship between remittances and economic growth above the threshold of 5.86%, above which remittances increase economic growth in African countries. This paper supports the view that remittances have a positive effect on growth only when the financial sector is strong and when there is a good institutional quality

Keywords: Remittances; Economic Growth; Dynamic threshold panel data; Africa (search for similar items in EconPapers)
JEL-codes: F2 F4 (search for similar items in EconPapers)
Date: 2024-03-30
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