International migration, remittance flows, and economic growth among West African countries

Abstract

This study assessed the relationship between international migration, remittance flows, and economic growth in West African countries from 1986 to 2023. The study used non-stationary heterogeneous panel model techniques of pooled mean group and mean group estimators. The study found that international migration and remittances exert significant but mixed influence on the growth of the West African countries. The findings imply that remittances had varying effects on growth, with some countries benefiting significantly from these inflows due to their use in productive investments. In contrast, others showed less significant effects due to the prevalence of consumption-oriented remittance spending. The finding showed the positive interactive effects of international migration and remittances on growth, implying that remittance inflows can mitigate the economic pressures of outward migration if channelled effectively toward investment and development-oriented projects. The study recommends that governments in the region should encourage the productive use of remittances and strengthen the institutions in their countries so that they will facilitate and maximise the benefits of channelling remittances to their home countries by the emigrants, while West African regional bodies should establish migration policies that would address the root causes of migration and make conscious efforts to retain the young talents within the region for effective and inclusive growth.