Munich Personal RePEc Archive

International Migrant Remittance and Productivity Growth in Ghana

Ustarz, Yazidu and Haruna, Issahaku (2017): International Migrant Remittance and Productivity Growth in Ghana. Published in: Ghana Journal of Development Studies , Vol. 14, No. 2 (17 October 2017): pp. 63-82.

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The study assessed the relationship between productivity growth and remittance at the macro level. Existing studies have largely focused on the micro level which falls short of revealing how shocks in the economy are transmitted through international remittance. Using time series analysis for data covering the period 1975-2013, the results from trend equation revealed that remittance inflows remained positive and increased modestly over time while economic growth as measured by the growth in labour productivity per person has been fluctuating. Regression results showed that remittance is significantly and negatively related to productivity in Ghana. The study revealed that foreign direct investment, official development assistance and international trade are positively related to productivity. It is recommended that government should make the business environment friendly so as to enhance foreign direct investment and boost trade as these have positive impact on productivity.

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