The Impact of Remittances on Economic Growth: The Evidence from Morocco

MAKHLOUF Farid & NAAMANE Adil

Abstract

The purpose of this article is to contribute to the empirical literature and to enrich the debate on the impact of worker’s remittances on growth, in home countries. By using the VAR model, we analyzed the impact of the worker’s remittances transfers on the economic growth in Morocco. Impulse response functions and variance decomposition show that the worker’s remittances have a positive impact on GDP per capita. The results also show that remittances affect economic growth through financial development.