Remittances and Economic Growth: Panel VAR

Fatma Zaarour (), Ghlama Haddad () and Adnene Ajimi ()
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Fatma Zaarour: IHEC, LaREMFiQ, University of Sousse
Ghlama Haddad: IHEC, LaREMFiQ, University of Sousse
Adnene Ajimi: IHEC, LaREMFiQ, University of Sousse

Journal of the Knowledge Economy, 2025, vol. 16, issue 3, No 3, 11045-11062

Abstract: Abstract Remittances became a major source of financing for developing countries; the purpose of this study is to assess the impact of remittances on economic growth by highlighting different transmission channels. The estimates are made over the period extended from 1980 to 2016 with the model Panel VAR. This estimate indicates that an increase in remittances results in an improvement in economic growth and that remittances increase following an economic shock. Thus, the results allow drawing no definitive conclusions about the channels (consumption and population growth channel), but they confirm that the remittances can increase investment.

Keywords: Developing countries; Economic growth; Migration; Remittances; Shock; Panel VAR (search for similar items in EconPapers)
JEL-codes: F22 F24 F43 F63 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s13132-024-02227-x

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