| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5056372 | Economic Systems | 2013 | 11 Pages |
â¢We explore the effects of remittances on per worker income.â¢Effect of aid and financial deepening are also examined.â¢Remittances have a positive effect on per worker output both in the short- and long-run.â¢Aid has negative effect in the long run and financial deepening no effect.
Using an augmented Solow framework and an ARDL bounds test for cointegration, we explore the short- and long-run effects of remittances, aid and financial deepening on growth in Guyana using annual data for the period 1982-2010. The results show that remittances have a positive and significant effect both in the short and the long run. Aid has a negative effect in the long run and financial deepening is not statistically significant. The Granger-causality test reveals that capital stock, aid and financial deepening cause remittances inflow in Guyana.
