THE CAUSAL RELATIONSHIP BETWEEN ECONOMIC GROWTH AND REMITTANCE IN MINT COUNTRIES: AN ARDL BOUNDS TESTING APPROACH TO COINTEGRATION
THE CAUSAL RELATIONSHIP BETWEEN ECONOMIC GROWTH AND REMITTANCE IN MINT COUNTRIES: AN ARDL BOUNDS TESTING APPROACH TO COINTEGRATION

Summary/Abstract: The paper examines the causal relationship between economic growth and remittance during the period 1990 – 2017, by including some macroeconomic variables such as inflation, foreign direct investment, final consumption expenditure, gross capital formation, and trade as the control variable in MINT countries. Employing the ARDL bounds testing approach to cointegration, our results show that while 1% increase in remittance in Indonesia will cause 0.05% increase in the economic growth at the long-run, it has 0.03% and 0.05% increase on Mexico and Indonesia economic growth respectively in the short-run with a 1% change in remittance. However, remittance was found to have a 0.02% decrease on the Nigeria economy with a 1% percent increase in remittance.

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