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

Adedoyin Isola Lawal, Afees Salisu, Abiola John Asaleye, Ezeikel Oseni, Bukola Bose Lawal-Adedoyin, Samuel Olatunde Dahunsi, Emmanuel Oluwasola Omoju, Abigail Oyeronke DickTonye, Elizabeth Bolatito Ogunwole and Abiola Ayopo Babajide
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Adedoyin Isola Lawal: Department of Economics, Bowen University, Iwo 232101, Nigeria
Abiola John Asaleye: Department of Economics, Bowen University, Iwo 232101, Nigeria
Ezeikel Oseni: Bank of Industry, Lagos 102273, 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

JRFM, 2022, vol. 15, issue 6, 1-13

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.

Keywords: economic growth; exchange rate; remittances; agricultural output; trade; Africa (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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