Remittances, Financial Sector Development, Efficiency, and Growth in Africa

Authors

  •   Raheem Ibrahim Dolapo Student, Department of Economics, University of Ibadan

DOI:

https://doi.org/10.17010/ijf/2015/v9i2/71522

Keywords:

Remittance

, Financial Sector Development, Indicators, Developing Countries

F22

, F43, G21, O40

Paper Submission Date

, June 6, 2014, Paper sent back for Revision, August 18, Paper Acceptance Date, December 3, 2014.

Abstract

The study modelled the relationship between remittances and economic growth and its interaction with financial development and efficiency. Using dataset for 44 countries in Africa for the period from 1998 to 2012, the results obtained showed that remittances are positively related to growth. Remittances impact more in recipients' economies with a less-developed financial sector. Quantity-based indicators of financial development impacted mildly on economic growth as compared to the quality-based indicators. The interaction between remittances and the quality-based indicators was more important to growth than the interaction between remittances and quantity based indicators. These results are robust to the threshold estimation. The study recommended the design of policies that would facilitate improvements in the quality-based indicators, a situation that has previously been ignored.

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Published

2015-02-01

How to Cite

Dolapo, R. I. (2015). Remittances, Financial Sector Development, Efficiency, and Growth in Africa. Indian Journal of Finance, 9(2), 25–34. https://doi.org/10.17010/ijf/2015/v9i2/71522

Issue

Volume 9, Issue 2, February 2015

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

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