Remittances: Help or Hinderance to Economic Growth? Facilitation, Utilisation and Government Intervention; A Look at Nigeria and Morocco

This thesis serves to collate and analyse the most relevant literature on the relationship between remittances and economic growth by observing GDP increases attributed to the reception and use of remittances in developing countries. The findings conclude that across the literature similar themes and suggestions are repeated, and this paper distils these findings to two key factors which appear to garner the most benefit from remittances: (1) That remittances be facilitated; and (2) that remittances be utilised. If both conditions are met, we identify that remittances appear to help to economic growth, if these conditions are not met, remittances can be a hinderance to economic growth. The facilitation and utilisation of remittances can only be made possible by government intervention through remittance-based and other, macroeconomic policy. These policies can only be supported by a government which is democratic, corruption-free and is committed to good governance. Nigeria and...Show moreThis thesis serves to collate and analyse the most relevant literature on the relationship between remittances and economic growth by observing GDP increases attributed to the reception and use of remittances in developing countries. The findings conclude that across the literature similar themes and suggestions are repeated, and this paper distils these findings to two key factors which appear to garner the most benefit from remittances: (1) That remittances be facilitated; and (2) that remittances be utilised. If both conditions are met, we identify that remittances appear to help to economic growth, if these conditions are not met, remittances can be a hinderance to economic growth. The facilitation and utilisation of remittances can only be made possible by government intervention through remittance-based and other, macroeconomic policy. These policies can only be supported by a government which is democratic, corruption-free and is committed to good governance. Nigeria and Morocco are used as case studies to demonstrate this relationship as Nigeria has lax policies regarding remittances overall, while Morocco has strong facilitation policies, but poor utilisation of remittances for economic growth.Show less

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Remittances: Help or Hinderance to Economic Growth? Facilitation, Utilisation and Government Intervention; A Look at Nigeria and Morocco