Contract Enforcement, Remittance and Economic Growth in Ghana

This paper provides evidence that contract enforcement and remittances positively affect economic growth. Secondary data on Ghana was obtained from World Development Indicator spanning from the period 1980 to 2017. The variables used for the study include economic growth as the dependent variable and contract enforcement and remittances as independent variables. Foreign Direct Investment, export and financial development were used as control variables. The study investigates the significant relationship between remittances and economic growth in the presence of contract enforcement. Hence, one will like to examine the effect of contract enforcement to ensure that the remittance received is used. Cointegration, unit root estimations and regression estimations were conducted on time series data in examining the link between remittances and economic growth. The study shows a significant positive relationship between contract enforcement and economic growth in Ghana. The study also shows an important positive link between the interaction of remittances and contract enforcement on Ghana's economic growth in the long run. It was recommended in the study that Ghana should have strong contract enforcement so remittance and other factors can help promote economic growth.