Journal of Applied Sciences1812-56541812-5662Asian Network for Scientific Information10.3923/jas.2009.3275.3286AhortorC.R.K. AdenutsiD.E. 122009918The essence of this study is to verify the macroeconomic implications of cross-border remittances for economic growth prospects of small-open developing economies for the period, 1996-2006. A set of dynamic panel models specified within the framework of Blundell-Bond Generalized Method of Moments (GMM) was empirically analyzed. Using annual panel data from 31 small-open developing countries from Sub-Saharan Africa, Latin America and the Caribbean, this study argues that, contemporaneously, remittances contribute significantly to growth in small-open developing economies. Remittances, however, contribute more to long-run economic growth in Latin America and the Caribbean than to Sub-Saharan Africa. In dynamic terms, remittances retard growth, but with overall positive long-run growth impact across these developing economies. The methodology is very important to apply in another field.]]>Acosta, P.A., E.K.K. Lartey and F.S. Mandelman,20072007Adams, Jr. R.H.,199847155173Ahlburg, D.A.,19911991Arellano, M. and S. Bond,199158277297Arellano, M. and O. Bover,1995682951Banerjee, A. and E. Duflo,20038267299Barro, R.J.,19961996Blundell, R. and S. Bond,199887115143Bond, S.R.,20021142162Brown, R.P.C.,1994133347367Brown, R.P.C. and D.A. Ahlburg,199926325344Capistrano, L.O. and M.L. Sta-Maria,20072007Chami, R., C. Fullenkamp and S. Jahjah,2005525581Chimhowu, A.O., J. Piessse and C. Pinder,20032003pp: 136Edwards, A.C. and M. Ureta,200372429461Fayissa, B. and C. Nsiah,20082008Forbes, K.,200090869887Giuliano, P. and M. Ruiz-Arranz,20052005Gupta, S., C. Pattillo and S. Wagh,20072007Gupta, S., C.A. Pattillo and S. Wagh,200937104115Hanson, G.H. and C. Woodruff,20032003Heller, P.S.,20052005International Monetary Fund,20052005Jongwanich, J.,20072007Knowles, S.,200541135159Kule, D., A. Manncellari, H. Papapanagos, S. Qirici and P. Sanfey,200236229239Lipton, M.,19808124Martin, P., S. Martin and F. Pastore,200240103118Massey, D.S. and E.A. Parrado,199879134Mesnard, A.,200456242262McKinley, T.,20052005Mishra, P.,20052005Mundaca, G.B.,200513288303OECD, 2005Raomirez, M. D. and H. Sharma,20082008Ratha, D.,20032003Roodman, D.M.,20062006Solimano, A.,20032003Taylor, J.E.,199214187208Woodruff, C. and R. Zenteno,200782509528World Bank,20082008Zarate-Hoyos, G.A.,200422555565