The Relationship between Remittances and Economic Growth in Togo: A Vector Equilibrium Correction Mechanism

This paper investigates the relationship between

remittances and economic growth in Togo. Using time

series data over a period of 42 years (1974-2015) for

Togo, we apply Johansen cointegration test methods,

followed by three-step vector equilibrium correction

mechanism (VECM) for long-run causality and Wald test

for short-run causality along with pairwise-Granger

causality test. Our result confirms a long-run bi-
directional Granger causality exists between remittances

and economic growth in Togo. However, no short-run

causal relationship exist between remittances and

economic growth. The paper also discusses policy

issues that comes up from the consequences of the

analysis. The results of this study would help the

government and policy makers to take appropriate

domestic policies in the area of migration and

remittances for Togo.

Total Reviews: 0

Add to Wishlist

Product added! Browse Wishlist

The product is already in the wishlist! Browse Wishlist