Remittances are taken as an important source of household welfare and foreign currency earnings in developing economies. At the household level, remittances are an important source of welfare, and at the macro level, remittances provide a cushion for imports. This paper attempts to analyze the macroeconomic dynamics between remittances, financial development, investment, and economic growth by using the ARDL approach to cointegration. The results show that remittances significantly contribute to economic growth but are not significantly associated with credit and investment flows in the economy. This implies that the government should devise measures for channelizing remittances to investment rather than using them to finance imports and consumption.
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