TITLE:
The Impact of Remittance on the Real Exchange Rate in Ghana
AUTHORS:
Emmanuel Nketiah, Mavis Adjei, Bekoe Bernard Boamah, Gibbson Adu-Gyamfi
KEYWORDS:
Remittance, Real Exchange Rate, Capital Flows
JOURNAL NAME:
Open Journal of Business and Management,
Vol.7 No.4,
September
30,
2019
ABSTRACT: This study examined the impact of remittance on the real exchange rate on
Ghana economic performance. The study extracted and used secondary data sources
derived from the World Development Indicators (WDI) of the World Bank and Bank
of Ghana websites over the period 1970-2016. Trade openness, government public
debt, remittance, terms of trade, capital flow were used as independent
variable and real exchange rate as the dependent variable. Using the Ordinary
Least Squares (OLS) estimator, the study established that government public debt, trade openness and capital flow had significant
impact on real exchange rate in Ghana. The study also established that remittance
and terms of trade have no significant impact on real exchange rate. The
analysis further suggests that, in the long run, a change in the real exchange
rate is generally related to movement in economic fundamentals.