Remittances, financial development, and economic growth in African countries

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Résumé

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

Mots-clés

remittances, PSTR, financial development, African countries