Authors: S. Nyasha; N.M. Odhiambo
Addresses: Department of Economics, University of South Africa, P.O. Box 392, UNISA, 0003, Pretoria, South Africa ' Department of Economics, University of South Africa, P.O. Box 392, UNISA, 0003, Pretoria, South Africa
Abstract: In this paper, we have empirically examined the impact of remittances on economic growth in South Africa over the period from 1970 to 2019. The study was motivated by the conflicting empirical findings that have emerged in the literature on the impact of remittance on economic growth in various countries. The study was also motivated by the need to find an empirical backing on the assertion that remittances are good for economic growth in developing countries. Using the autoregressive distributed lag (ARDL) bounds testing approach, the empirical results, contrary to expectations, have revealed that in South Africa, remittances have a negative impact on economic growth, irrespective of whether the regression analysis is conducted in the long run, or in the short run.
Keywords: remittances; international remittances; remittance inflows; economic growth; South Africa.
International Journal of Trade and Global Markets, 2022 Vol.15 No.2, pp.254 - 272
Accepted: 27 Nov 2020
Published online: 10 Mar 2022 *