Empirical Investigations into Macroeconomic Variables and Internal Remittances in Rural Ghana

Abstract

This study examines the link between macroeconomic indicators of workers’ (formal and informal) and remittances in Rural Ghana. A number of regressions tests have been conducted and found the link between price increases, cost of borrowing in Ghana and the remittances. According to the available statistics, remittances in Ghana do not have any significant impact on the macroeconomic variables.

This particular study indicated that in Ghana, if the gross domestic product popularly called GDP, increases, other things being equal, local inflows into the regions falls by -0.003%. It follows from this study, if the GDP rate in Ghana goes up, domestic interest rate decreases by -0.98%. Again, if the GDP increases by 1% change, inflation rate of Ghana falls significantly by -0.060%. In conclusion, local inflows into various regions do not react to the changes in domestic interest. From this study, remittances do not contribute significantly to the growth of this economy.