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This study examines the short-run and long-run impacts of foreign aid and remittances on economic growth in a panel of 31 African countries from 1980 to 2019 utilizing the ARDL Pool Mean Group (PMG) estimation technique. The PMG is utilized based on the outcome of the Hausman test which justifies it appropriateness. There is long-run association among the regressors and the regressand in the model. Our results indicate that, in the short-run, remittance and foreign aid respectively have a negative impact on economic growth but that impact is statistically insignificant. In the long-run, however, remittances have a positive and significant impact on economic growth while foreign aid has a positive but insignificant effect on economic growth on the continent. These results have substantial policy implications. African governments should adopt effective policies to maximize the usefulness and effectiveness of foreign capital, such as foreign aid and remittances, in boosting economic growth. [ABSTRACT FROM AUTHOR]

The study examines the relationship between private capital inflows (foreign direct investment and remittances), institutions and economic growth in a panel of 45 African countries from 2002 to 2018. Using the system generalized method of moments (SGMM), the study found that foreign direct investment inflows (FDI) have a significant and positive impact on economic growth in Africa. However, remittances exert no significant impact on economic growth. The study further analyzed the moderating role of institutions in the relationship between private capital inflows and economic growth by examining the impact of the interactions between private capital inflows and institutions on economic growth. The study concluded that the coefficient(s) of the interplay between FDI and institutional variables is negative and statistically significant presupposing that institutions in Africa do not complement FDI inflows in driving economic growth. In the same vein, the coefficient of the interactive variables between remittances and institutions (regulatory requirement) is negative and significant indicating that remittances and institutions are substitutes rather than complements. The implication of the study, therefore, lies in the fact that institutions in Africa are weak and as a result cannot play a supportive role in reaping the positive spillovers of private capital flows to Africa. [ABSTRACT FROM AUTHOR]