Abstract

This paper examines the effect of remittances and regime durability on economic growth for 33 Sub-Saharan African (SSA) countries over the period 1970–2012 using General Method of Moments estimation technique. The empirical results show that remittances do not have a robust impact on economic growth in SSA. Regime durability is negatively and significantly related to economic growth while regime type is positively and significantly correlated with economic growth. The interaction terms of both regime durability and democracy with remittances however were found to be positively and significantly related to economic growth. This implies that the growth effect of remittances is enhanced in the presence of a democratic and stable government.

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