The impact of remittances on Tunisian economic growth: an ARDL analysis

Abstract

international. In this context, migratory flows and the resulting transfers of funds are taking on unprecedented scale. Between 1995 and 2015, annual remittances to countries of origin increased significantly, from $101 billion to over $582 billion, representing a 525% rise over a twenty-year period (Feld
2020). Migrant remittances remain a major source of external financing for many developing countries. Some studies claim that these funds create
a new dynamic in development (Attila et al. 2018), while others disagree (Berdiev et al. 2013). In Tunisia, remittances have gradually increased since 2000 and continue to outpace official development assistance and foreign direct investment (FDI), except for 2006, when FDI hit 10% of gross domestic product (GDP)
(Chnaina & Makhlouf 2015). Moreover, they have doubled the revenue from FDI and tourism to $2.7 billion in 2022 (World Bank 2023). According to
the most recent data, Tunisia is one of the main African countries receiving remittances and ranks eighth among the destinations of remittances from
its diaspora.