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| Eric Fina kamani, Amadé Nacanabo, Olivier Beguy, Ibrahima Diouf and Gervasio Semedo |
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| ''Remittances, financial development, and economic growth in African countries'' |
| ( 2025, Vol. 45 No.1 ) |
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| This study examines the impact of remittances on economic growth in African countries, with a particular focus on the role of financial development. Unlike previous research, it adopts a two-step approach: first, it identifies the key growth determinants using Bayesian inference techniques; second, it estimates panel smooth transition regression (PSTR) models, incorporating these determinants as controls. The results indicate that remittances alone do not have a significant impact on economic growth. However, their positive effects are amplified in the presence of a well-functioning financial system. The study recommends that African policymakers prioritize financial sector reforms to fully harness the growth-enhancing potential of remittances. |
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| Keywords: Remittances, Economic growth, Financial development |
JEL: F2 - International Factor Movements and International Business: General
O4 - Economic Growth and Aggregate Productivity: General |
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| Manuscript Received : Feb 06 2023 | | Manuscript Accepted : Mar 30 2025 |
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