Linkage between Remittances and Economic Growth: Empirical Evidence from The Gambia

Cherno Jallow
Additional contact information
Cherno Jallow: Department of Islamic Economics and Finance, Istanbul Sabahattin Zaim University, 34303, Istanbul, Turkey

Journal of Development Innovations, 2023, vol. 7, issue 2, 41-55

Abstract: This study empirically investigates the linkage between remittance inflows and economic growth in The Gambia. This study uses annual data from 1996 to 2019 to estimate a vector error correction model to examine the causal linkage between remittance inflows and economic growth. The results indicate that remittances have a positive and significant impact on economic growth. Further results show significant causality both in the short-run and long-run as evidenced from the VECM and Granger causality tests. In view of these findings, proper regulations and incentives for remittance inflows through formal channels should be put in place, and the government should make receiving money in The Gambia easier by reducing the transaction cost.

Keywords: remittances; economic growth; vector error correction model; Gambia (search for similar items in EconPapers)
JEL-codes: F24 O47 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.karmaquest.org/journal/index.php/journal/article/view/95/62

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kqi:journl:2023-12-2-3

Access Statistics for this article

Journal of Development Innovations is currently edited by Bamadev Paudel

More articles in Journal of Development Innovations from KarmaQuest International
Bibliographic data for series maintained by Bamadev Paudel ().