Remittances, Financial Development, and Economic Growth in the Maghreb Countries
The study investigated the relationship among remittances, financial development, and economic growth in the Maghreb countries (Tunisia, Algeria, and Morocco) over the 2000-2021 period. Using system Generalized Method of Moment (GMM) panel data analysis, we find strong evidence of a positive relationship between remittances and economic growth. We also find evidence that remittances appear to be working as a complement to financial development and, moreover, that the effect of remittances is more pronounced in the presence of the financial development variable. The policy implications of this study appeared clear. Improvement efforts need to be driven by local-level reforms to ensure the development of domestic financial system in order to take advantage of remittances.
Keywords: Remittances, Financial development, Economic growth.
JEL Classification: E21; F34; F21.
