Vol 12, No 1 (2024)
The Impact of Remittances on Exchange Rates in West African Monetary Zone (WAMZ)
Collins K Anosike
Abstract
The study investigates the impact of remittances on the real exchange rate of West African Monetary Zone (WAMZ) member countries by using annual data from six countries from 1960 to 2022. The WAMZ member countries are Ghana, The Gambia, Nigeria, Guinea, Liberia and Sierra Leone. Remittances are important sources of foreign capital for developing countries including WAMZ. The study is unique because it examines three periods namely: Pre- WAMZ (1960-2000), During WAMZ (2001-2022) and the entire period (1960-2022); captures and compares how the increase in receipt of migrant remittances have affected the real exchange rate for the different periods given the huge increase in remittances in the last two decades; use updated data for longer period; shows how the different explanatory variables changes in the three periods examined. Multicollinearity tests, results reveal no multicollinearity among the variables.
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Keywords
Remittance; Real exchange rate; Panel data; West African Monetary Zone.
Publication information
Volume 12, Issue 1
Year of Publication: 2024
ISSN: 1857 - 8721
Publisher: EDNOTERA
How to cite
Anosike, K. C.: The Impact of Remittances on Exchange Rates in West African Monetary Zone (WAMZ). Journal of Applied Economics and Business, Vol 12, No. 1, 5-26. (2024)