Asian Basic and Applied Research Journal

This paper adopt the error correction model technique (VECM) to establish the long run and short run relationship between personal received and economic growth in the Gambia during the period 2003 to 2017. In testing for the unit root test properties of time series data, all variables are found to be stationary at first differencing level under the Augmented Dickey Fuller test (ADF). The results of VECM demonstrate the existence of a positive and significant relationship between personal remittances received and economic growth both in the long run and short run. Personal remittances received act as a great source of foreign exchange currency and also help in reducing the level of poverty in the developing countries. Total exports have a positive and significant impact on economic growth in the long run but not in the short run. Total imports have a negative and significant impact on economic growth in the long run but in short run. We recommend that the government should encourage the people who received remittances to invest their money in business and also agriculture especially in poultry and agro base processing. It is also recommended that the government should create more employment opportunities to minimize the number of our able young men and women migrating to overseas in search for a better living standard.