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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]

International remittances remained one major source of international financial resources in the world. Yet very limited empirical studies exist on the impact of these remittances on economic growth, more especially in Ghana. To bridge this void in literature, the study analyzes the impact of remittances on GDP growth in Ghana from 1990 to 2020. The ARDL estimation technique was used to test the long-run association between the selected variables. The results showed that GDP growth rate has a long-run relationship with remittance inflows, foreign direct investment, unemployment rate, inflation, trade, population growth rate and official development assistance. Lastly, the mediating effect of unemployment on remittance inflows negatively affects GDP growth rate in both runs. It is therefore recommended that to ensure sustained GDP growth rate in Ghana, government should consider tapping into the contribution of remittances by ensuring reliable transfer means and cutting down the cost of transfer. [ABSTRACT FROM AUTHOR]

South-East European countries rely heavily on remittances and FDI as external sources of financing. Hence, an investigation of the behaviour of remittances and FDI during the business cycle and their impact on economic growth is of crucial importance. To achieve this objective, we first analyse the cyclical nature of remittances and FDI flows in Albania, Bosnia and Herzegovina, Croatia, Montenegro, the Republic of North Macedonia, and Serbia (SEE6) during their business cycles in the 2008q1-2021q2 period. Second, we investigate the causal link among these variables, and find out that although at the aggregate level remittances and FDI move synchronously and in the same direction as the business cycle, there are considerable variations across countries. Following Dumitrescu-Hurlin Panel Granger causality test, we find that for most SEE6 there is a bidirectional causal relationship between remittances and economic growth, i.e. economic growth is caused by remittances, and GDP growth also stimulates remittances. [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]