The Impact of Personal Remittances, FDI and Exports on Economic Growth: Evidence from West Africa

Abstract

The study delves into West African data to assess the impact of personal remittances, FDI and exports on economic growth by applying panel data methodologies on 15 countries from 1991 to 2017. The study further applied panel fully modified ordinary least square, robust least square, and generalized linear model regression methodologies to make a statistical inference. From the results, it could be ascertained that personal remittances and exports have a strong and positive impact on economic growth. Meanwhile, FDI has a positive impact on economic growth as an individual factor, but with the existence of personal remittances and exports, FDI tends to become negative and significant in West Africa. The study proposes further studies into the area of FDI to unravel the exact relationship it has with economic growth.

Keywords: Personal remittances, Foreign direct investment, Exports, Robust least squares, Fully modified ordinary least squares, Generalized linear model

DOI: 10.7176/EJBM/11-23-04

Publication date: August 31^st 2019