1. bookVolume 10 (2021): Issue 1-2 (December 2021)
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Format
Journal
eISSN
2285-388X
First Published
05 Dec 2019
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1 time per year
Languages
English
Open Access

Remittances and Economic Growth in Niger: An Error Correction Mechanism Approach

Published Online: 02 Dec 2021
Volume & Issue: Volume 10 (2021) - Issue 1-2 (December 2021)
Page range: 17 - 29
Journal Details
License
Format
Journal
eISSN
2285-388X
First Published
05 Dec 2019
Publication timeframe
1 time per year
Languages
English
Abstract

Migration has for a long time been a significant source of revenue for a huge number of persons in the Republic of Niger. In order to improve their families living condition, a great number of young people in Niger follow the migration path. In 2019, a total of 293 million U.S. dollars has been sent by migrants to their family members in Niger (World Bank, 2019), that is 3% of Niger GDP. The study used various time series econometric techniques including unit root test, Engle-Granger cointegration test, vector equilibrium correction method and some diagnostic tests on the residuals to inspect the connection between remittances and economic growth in Niger. The empirical results showed that there is the existence of a long run relationship between remittances and economic growth in Niger. The error correction term’s coefficient shows that about 51.62% of the discrepancy between long run and short run is corrected with a yearly data suggesting an acceptable rate of adjustment to equilibrium. Also, in the short run ceteris paribus a 10% increase in the remittances would lead to 2.03% increase in Niger Gross Domestic Product.

Keywords

JEL Classification

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