GoodWill Journal of Economics, Management, and Accounting
Vol. 5 No. 1 (2025): April 2025

Assessing the Impact of Remittances on Economic Growth and Household Welfare in Haiti

Jean-Baptiste Innocent Nyangoma Jean-Baptiste Innocent Nyangoma (Université de Mwaro)
Carlos Eduardo Martínez (Universidad de Chile, Faculty of Economics and Business, Diagonal Paraguay 257, Santiago, Chile)
Elena Petrova (London School of Economics and Political Science, Houghton Street, London WC2A 2AE, United Kingdom)



Article Info

Publish Date
05 Apr 2025

Abstract

This study examines the impact of international remittances on economic growth and household welfare in Haiti, a remittance-dependent economy where such inflows represent over 20% of GDP. Using annual time-series data from 2000 to 2023 obtained from the World Bank, IMF, and UNDP databases, the study applies the Autoregressive Distributed Lag (ARDL) bounds testing approach to assess both short-run and long-run dynamics among remittances, GDP growth, and household consumption. The empirical results indicate that remittances exert a statistically significant and positive effect on economic growth in the long run, primarily through increased household income, consumption expenditure, and investment in education and health. However, in the short run, remittance inflows exhibit a neutral effect on growth due to high import dependency and weak financial intermediation. Furthermore, the study finds that remittances contribute to household welfare improvement by reducing poverty incidence and income inequality, although their developmental potential is constrained by Haiti’s structural vulnerabilities and limited institutional capacity. The findings suggest that policies promoting financial inclusion, productive investment of remittances, and diaspora engagement could enhance the developmental role of remittances. This research provides new insights into the macroeconomic and social implications of remittance inflows in small developing economies and offers evidence-based recommendations for achieving inclusive and sustainable growth in Haiti.

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Journal Info

Abbrev

GoodWill

Publisher

Subject

Economics, Econometrics & Finance

Description

GoodWill Journal of Economics, Management, and Accounting, published by the Amerta Institute under Yayasan Amerta Insan Unggul, is a peer-reviewed electronic scholarly journal dedicated to advancing research in the fields of economics, management, and accounting. The journal is registered with ...