Remittances, financial development and economic growth in Africa

This study investigates the role of remittances and financial development on economic growth in a panel of 36 countries in Africa over the period 1980-2009. It uses a panel econometrics framework and the main findings of the study are as follows: (1) Remittances appear to be an important source of growth for these countries in Africa during the period under study. (2) Volatility of remittances appears to have a negative effect on the growth of countries in Africa. (3) Remittances appear to be working as a complement to financial development. (4) However, importance of financial development in boosting economic growth appears weak, at least among the countries under study. (C) 2012 Elsevier Inc. All rights reserved.