Diaspora Remittances and Economic Growth nexus in Zimbabwe: (1990-2022)
Abstract – The study examines the nexus between diaspora remittances and economic growth in Zimbabwe. Yearly time series data from 1990 up to 2022 was used to ascertain whether there is any association between emigrants expatriated funds and economic growth. Over the years, diaspora remittances to Zimbabwe have been on an upward trend surpassing a billion mark. Gross Domestic Product (GDP) was used as the dependent variable whilst diaspora remittances were used as an explanatory variable together with other control variables. Using the Autoregressive Distributed Lags (ARDL) technique, the results indicate that emigrant funds from the diaspora have a positive bearing on the growth of the economy both in the short run and in the long run. Stated differently, an increase in diaspora remittances to Zimbabwe increases the rate of economic growth. Therefore, remittances are a potential source of economic expansion in Zimbabwe and the government should harness on this. The study acclaims that the government should improve the inflows of remittances to Zimbabwe by reducing the associated transactional costs. The government should also provide financial literacy training to the migrant workers and their families so that they appreciate the role played by remittances. In addition, the government should provide sustained monetary incentives in local currency for all the diaspora remittance inflows that are received through formal channels to encourage more remittances. Keywords: Diaspora Remittances, Economic Growth, Gross Domestic Product (GDP) [Cite as: Chigombe, J., Connick, A., & Nyabunze, A. (2024). Diaspora Remittances and Economic Growth nexus in Zimbabwe: (1990-2022). Diverse Journal of Multidisciplinary Research, Vol. 6, Issue 1, Pages 1-11.]