THE IMPACT OF REMITTANCE ON ECONOMIC GROWTH IN WEST AFRICA

This study investigates the impact of remittance on economic growth within a neoclassical Solow-growth model framework using a strong balance panel date from 1995 to 2019 for countries within West Africa. The subject of investigation is characterized by different and conflicting perspectives on empirically related pieces of literature. As migration optimists believe in positive impact while migration pessimists believe that the inflow of remittance has either a negative or statistically insignificant impact on economic growth. An advanced panel econometric methodology such as Pool OLS, Random effect and Fixed effect model were used in estimating the impact of remittance on economic growth in West Africa. And all data sources are from the World bank development indicator 2021. The empirical regression analysis result shows a marginal effect of remittance on economic growth in West Africa, but the coefficients are positive and statistically significant. The study also employed some policy recommendations to be followed to make the inflow of remittances cheap, easy, and safe for receiving countries