Governance, Financial Inclusion and Foreign Remittances in Zimbabwe: A VECM Approach


  • Alexander Maune UNISA
  • Justice Mundonde BUSE


Financial Inclusion; Foreign Remittances; Diaspora Remittances; Zimbabwe


This study examines the impact of governance and financial inclusion on remittances in
Zimbabwe using time series data collected from the World Bank database for the period 2009
to 2021. A vector error correction model was conducted using Stata/SE 14.2 to analyse the
short- and long-run relationships between the variables. The results demonstrate the existence
of cointegration in the model. The Johansen normalization long-run output showed a negative
impact of governance on remittances, as well as a positive impact of financial inclusion on
remittances. Both coefficients are statistically significant at the 1% level. Furthermore, the
results show that governance and financial inclusion in Zimbabwe have asymmetric effects
on remittances in the long run, on average, ceteris paribus. This study is important in policy
formulation and implementation. The government should create a conducive environment for
remittances through improved governance and financial inclusion policies.


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How to Cite

Maune, A., & Mundonde, J. (2024). Governance, Financial Inclusion and Foreign Remittances in Zimbabwe: A VECM Approach. Acta Universitatis Danubius. Œconomica, 20(1), 192–210. Retrieved from



Financial Economics