Diaspora Contribution and Challenges: Evidence from the Ghanaian Economy

Ferdinand Ahiakpor, University of Cape Coast

International migration has been a crucial component of globalization in recent times. According to estimates, 1.5 to 3 million Ghanaians migrate to other countries. Therefore, this paper examines the role of remittances from the diasporas to the national development. The paper uses United Nations Economic Commission for Africa (ECA) Macroeconomic model developed for Ghana to simulate and forecast the various impacts of diasporas contribution to the macroeconomic variables. The study revealed that remittance contributed about 0.7 percent to Ghana’s GDP growth in 2023 and expected to contribute 0.87, 1.1 and 1.32 percent in 2024, 2025 and 2026 respectively. Employment 0.02 percent (2023) and investment 1.81percent( 2023)To enhance more inflow from the diasporas, there is the need to develop more diaspora programmes, remittance linked programmes to empower the recipients, simplify and improve payment systems.