Do institutions and financial development determine the remittances-growth nexus in Africa?

This study investigates the effect of remittances on economic growth in a panel of thirty African countries. It looks at how the financial and institutional context influences a country's capacity to benefit from remittances. Using the GMM system, results show that the relationship between financial development and remittances is a positive one for conducting economic growth. Remittances are more effective in countries that have a good governance system and are capable of providing suitable public services.