Abstract:
This paper adopt the error correction model technique (VECM) to establish the long run and short
run relationship between personal received and economic growth in the Gambia during the period
2003 to 2017. In testing for the unit root test properties of time series data, all variables are found to
be stationary at first differencing level under the Augmented Dickey Fuller test (ADF). The results of
VECM demonstrate the existence of a positive and significant relationship between personal
remittances received and economic growth both in the long run and short run. Personal remittances
received act as a great source of foreign exchange currency and also help in reducing the level of
poverty in the developing countries. Total exports have a positive and significant impact on
economic growth in the long run but not in the short run. Total imports have a negative and
significant impact on economic growth in the long run but in short run. We recommend that the
government should encourage the people who received remittances to invest their money in
business and also agriculture especially in poultry and agro base processing. It is also
recommended that the government should create more employment opportunities to minimize the
number of our able young men and women migrating to overseas in search for a better living
standard.
