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309437

The Impact of Workers’ Remittances on the Economic Growth in Egypt: A Financial Inclusion Perspective

Article

Last updated: 27 Dec 2024

Subjects

-

Tags

الاقتصاد والعلوم السياسية

Abstract

This study aims to evaluate the impact of remittances from overseas workers on Egyptian economic growth within the financial inclusion framework as a moderating factor. Utilizing annual time-series data from 2004 to 2020 and the boundaries test approach, which relies on the ARDL model, the study found a non-linear relationship between remittances from overseas workers and economic growth in both the short and long-run. This nonlinear relationship is represented as a U-shaped curve, suggesting that the beneficial impact of remittances on economic growth is only apparent when their growth rate exceeds 41.37 percent. This threshold was met in only three years: 2005, when remittances increased by 50.2%; 2007, with a growth rate of 43.6%; and 2010, with a growth rate of 74.2%. Furthermore, the study found that financial inclusion has an insignificant positive impact on economic growth in both the short and long runs. Furthermore, the degree of financial inclusion did not strengthen the relationship between remittances and economic growth. Based on the results of both Cohen's d effect size and the correlation indexes, the relationship between remittances and economic growth has significant practical importance, regardless of whether the growth rate of remittances exceeds or falls below the 41 percent threshold each year.

DOI

10.21608/zcom.2023.222245.1275

Keywords

remittances of workers abroad, financial inclusion, Economic growth, and co-integration

Authors

First Name

Ramy

Last Name

ELazhary

MiddleName

-

Affiliation

قسم الاقتصاد-كلية التجارة-جامعة الزقازيق.

Email

ramyazhary@zu.edu.eg

City

-

Orcid

0000-0002-9731-2873

First Name

Fathy

Last Name

Eladham

MiddleName

-

Affiliation

كلية التجارة-جامعة الزقازيق

Email

fathyeladham5@gmail.com

City

-

Orcid

-

First Name

Medhat

Last Name

Elakkad

MiddleName

-

Affiliation

كلية التجارة-جامعة الزقازيق

Email

0000@000.com

City

-

Orcid

-

Volume

45

Article Issue

4

Related Issue

44065

Issue Date

2023-10-01

Receive Date

2023-07-10

Publish Date

2023-10-01

Page Start

3

Page End

32

Print ISSN

1110-7731

Online ISSN

2735-4512

Link

https://zcom.journals.ekb.eg/article_309437.html

Detail API

https://zcom.journals.ekb.eg/service?article_code=309437

Order

28

Type

تجاریة کل ما یتعلق بالعلوم التجاریة

Type Code

1,572

Publication Type

Journal

Publication Title

مجلة البحوث التجارية

Publication Link

https://zcom.journals.ekb.eg/

MainTitle

The Impact of Workers’ Remittances on the Economic Growth in Egypt: A Financial Inclusion Perspective

Details

Type

Article

Created At

27 Dec 2024