Migrants remittances and economic growth in Morocco: A VAR model analysis

This study examines the impact of remittances from Moroccan living abroad on Morocco’s economic growth over the period 1974–2023. Based on a thorough review of the theoretical and empirical literature, it highlights the main transmission channels of remittances, particularly through consumption, productive investment, and human capital accumulation. The empirical analysis uses a time series approach, applying a bivariate VAR model between GDP and remittances. The results indicate that remittances have a positive and significant short-term effect on economic growth, as confirmed by impulse response functions and Granger causality tests. These findings emphasize the need for policies that better channel remittances into productive investments to enhance their contribution to sustainable economic development.