Financial development, remittances and economic growth : empirical evidence from Egypt

The relationship between remittances, financial development, and real growth in recent years has increasingly become a topic of interest for scholars and practitioners alike. With the ever presence of globalization, the migratory patterns have fundamentally changed. The migration of people no longer means their total isolation from their home country; but rather a new dynamic environment has emerged with the increased importance of remittances on social, economic and political transformation back in their countries of origins. In addition, the continuing development of the financial systems whether it is in the banking sector or the stock exchange has accelerated in the last few decades. It is important to point out to the accelerating trend in financial development and its impact on real growth. Equally important to highlight the extent to which the financial system influenced the remittance patterns. By looking at Egypt as the country of interest from 1977 to 2014, the thesis investigates the role and impact of financial development and remittances on GDP. Egypt is chosen as the country of interest given its status as the biggest economy in North Africa and the third largest in the continent. Additionally, it is among one of the largest recipient of remittances from its expatriate population