Browsing by Author "Senayit Bekele"

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    The Effect of Remittance on Economic Growth: The Mediating Role of Financial Development: Evidence From Sub-Sharan Africa Countries
    (A.A.U, 2024-08-23) Senayit Bekele; Mengesha Yayo (PhD)
    This study investigates the relationship between remittances and economic growth in SSA Countries, as well as the mediating role that financial development plays, using GMM and SEM methodologies. The study considers annual panel data from 15 countries over the years 2000–2022. The objective was achieved through the use of both descriptive and inferential analysis. The econometric study included both diagnostic and pre-estimation testing, including panel unit root and cointegration tests. The estimate's findings showed that trade openness, foreign direct investment, gross domestic saving, and remittances all significantly boost economic growth, whereas population growth and trade openness have comparatively negative effects. Furthermore, gross fixed capital formation has no effect on economic growth in SSA countries. The research indicates that remittances are likely to have a positive effect on the economic growth of sub-Saharan African nations and that this effect will become more pronounced with increased financial development.