Abstract

The study investigated the relationship between diaspora remittances and economic growth for Zimbabwe. Time series data for the period from 1990 to 2019 were used. The study employed the error correction model (ECM) to determine the relationship between diaspora remittances and economic growth. Data from World Bank database were used. The study found diaspora remittance to be statistically significant in explaining economic growth. The study, therefore, recommend that Zimbabwe should put formal structures to tap in all flows from diaspora remittances. Furthermore, tax charged on remittances should not be discouraging for those who intend to send in their remittances. A clear policy be put in place and be made open to the public on the spending of income earned as a result of remittances. A significant share on expenditure of remittances earned, should be directed towards social amenities. Also, the Reserve Bank of Zimbabwe should endeavour to eliminate bottle necks in the processing of remittances as this act to the negative of remittances inflow.