The Impact of Remittances on Economic Development in Zimbabwe (2000-2015): An Econometric Model (OLS)

Abstract

This paper probes the impact of remittances on economic development in Zimbabwe using semi-annual time series data. Applying the Ordinary Least Squares (OLS) method in the study, the research found that remittances positively impact on economic development in Zimbabwe for the period under review. The results did confirm to other empirics except exports. Other important drivers of economic growth include Foreign Direct Investments, Unemployment; National Debt and Exports were also included in the model. The research confirmed that FDI’s has a negative effect on economic development and inflation had to be confirmed a positive effect. Recommendations were also given basing on the findings in this study.

Key terms: Economic Development, Remittances