Remittances and Economic Growth: A Study of Guyana
Posted: 13 Oct 2015
Using an augmented Solow framework and an ARDL bounds test for cointegration, we explore the short- and long-run effects of remittances, aid and financial deepening on growth in Guyana using annual data for the period 1982-2010. The results show that remittances have a positive and significant effect both in the short and the long run. Aid has a negative effect in the long run and financial deepening is not statistically significant. The Granger-causality test reveals that capital stock, aid and financial deepening cause remittances inflow in Guyana.
Keywords: Remittances, Financial deepening, Aid, Growth, Guyana
JEL Classification: C22, F24, F43, O54
Suggested Citation: Suggested Citation