<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>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.</p>
</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.

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

Faculté de Droit d’Economie et de Gestion; Département d’Economie et de Gestion

Journal of Social and Economic Statistics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Remittances and Economic Growth in Niger: An Error Correction Mechanism Approach"}

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...

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

Published Online: Dec 02, 2021

Page range: 17 - 29

DOI: https://doi.org/10.2478/jses-2021-0002

Keywords
Remittance, Engle-Granger cointegration, error correction model, Economic growth, Niger

© 2021 Issoufou Oumarou, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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

Published Online: Dec 02, 2021

Page range: 17 - 29

DOI: https://doi.org/10.2478/jses-2021-0002

KeywordsRemittance, Engle-Granger cointegration, error correction model, Economic growth, Niger

© 2021 Issoufou Oumarou, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Remittance, Engle-Granger cointegration, error correction model, Economic growth, Niger