Investigating the nexus between economic growth and remittance, trade openness, and investment

Abstract

This study examines the relationship between remittances and GDP per capita growth using the ARDL bounds testing approach, with trade openness and investment as control variables. The findings confirm a long-run cointegrating relationship among the variables, with an error correction term of −0.916, indicating a 92% annual speed of adjustment. Investment is statistically significant in both the short and long run, while trade openness is significant only in its contemporaneous short-run form. Remittances, however, have no statistically significant impact on GDP per capita growth in either the short run or the long run.