aspora Remittance Economic Growth and Development Nexus in Kenya

Abstract

In the recent past, diaspora remittance has been a main and regular source of foreign currency in Kenya. Over the past decade, diaspora remittance has grown from 576 Million Dollars in 2010 to 2.218 Billion Dollars in 2020 representing an increase of approximately 384 per cent. This leads to a developing interest on the impact that diaspora remittance has on economic growth considering the recent data. This study aimed to establish the effect of diaspora remittance on economic growth and development in Kenya and utilized quarterly data that was extracted from Statistical Abstracts and Economic Surveys for the period 2000-2020. The study used ordinary least squares estimation to established the effect of diaspora remittance on economic growth and development in Kenya. The outcome of the study revealed that diaspora remittance had a positive and significant impact on economic growth and development in Kenya. This study therefore recommends that the government should put policies that encourage diaspora remittance which will consequently contribute to economic growth