Determinants and Macroeconomic Impact of Remittances in Sub-Saharan Africa

Singh, Raju; Haacker, Markus; Lee, Kyung-woo; Goff, Maëlan Le

doi:10.1093/jae/ejq039

Cited by 153 publications

(140 citation statements)

References 28 publications

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“…The focus on the SSA nations is based on Singh et al (2011), whom find that while using a broad sample increases the degree of freedom, it may introduce unwanted heterogeneity if the factors that explain remittance differ across country groups. Most the empirical literature on the remittances-economic growth relationship has been based on an assortment of various samples of countries.…”

Section: Brief Literature Reviewmentioning

confidence: 99%

“…Instead of selecting channels from outside the model, we examine how remittances affect the inputs in a standard production function, namely, capital per worker, human capital, and total factor productivity as the key channels through which remittances may indirectly promote output per worker. Singh et al (2011) use fixed effects and two-stage least squares techniques on data from 36 SSA countries and find the effect of remittances on the growth rate of per capita real GDP to be negative and significant, whether or not interaction terms are included. This result suggests that the adverse effects of emigration on growth may dominate, at least in the SSA.…”

Section: Brief Literature Reviewmentioning

confidence: 99%

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The Effects of Remittances on Output Per Worker in Sub-Saharan Africa: A Production Function Approach

Ssozi

Asongu

2014

SSRN Journal

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This paper uses a production function to examine the channels through which remittances affect output per worker in 31 Sub-Saharan Africa (SSA) countries from 1980-2010. We find that remittances directly increase output per worker if complemented with education. The indirect effects vary with the economic characteristics of the recipient nations: while remittances have increased human capital among the low-income nations, among the upper-middle-income nations, they have mostly increased total factor productivity, but are still inversely related to factor inputs among the lower-middle-income nations of SSA. Finally, remittances are more effective when institutional risk is reducing.JEL classification: F22. F24, F35, F43, F63, O15, O16; O43; O55

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Section: Brief Literature Reviewmentioning

confidence: 99%

Section: Brief Literature Reviewmentioning

confidence: 99%

The Effects of Remittances on Output Per Worker in Sub-Saharan Africa: A Production Function Approach

Ssozi

Asongu

2014

SSRN Journal

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“…The data come from the WDI. Financial development is another important factor that makes remittances easier and cheaper, hence stimulating the flows via official channels (Freund and Spatafora, 2008;Singh et al, 2011). We therefore expect that the overall financial-sector development might lead to greater availability and lower costs for remittance services.…”

Section: Data and Variable Definitionsmentioning

confidence: 99%

“…The improved political situation may encourage remittances, since such an environment favors investment in the home country (Singh, et al, 2011). On the other hand, weak institution may also encourage remittances to compensate for the loss of purchasing power of the family back home.…”

Section: Data and Variable Definitionsmentioning

confidence: 99%

Do Transfer Costs Matter for Foreign Remittances? A Gravity Model Approach

Ahmed

Martínez‐Zarzoso

2016

Economics

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Using bilateral data on remittance flows to Pakistan for 23 major host countries, this is the first study that examines the effect of transaction costs on foreign remittances. The authors find that the effect of transaction costs on remittance flows is negative and significant; suggesting that a high cost will either refrain migrants from sending money back home or make them remit through informal channels. They also find that remittances are facilitated by the existence of migrant networks and improvements in home and host country financial services. Distance, which has been used in previous studies as an indicator of the cost of remitting, is found to be a poor proxy. JEL F22 F30 O11

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“…The size of emigrant stocks is arguably the most important determinant of remittances (Ratha and Shaw 2007;Freund and Spatafora 2008;Lueth and Ruiz-Arranz 2008;Singh et al 2009). …”

Section: Determinants Of Remittancesmentioning

confidence: 99%

Forecasting migrant remittances during the global financial crisis

Mohapatra¹,

Ratha²

2010

Policy Research Working Papers

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The financial crisis has highlighted the need for forecasts of remittance flows in many developing countries where these flows have proved to be a lifeline to the poor people and the economy. This note describes a simple methodology for forecasting country-level remittance flows in a manner consistent with the medium-term outlook for the global economy. Remittances are assumed to depend on bilateral migration stocks and income levels in the host country and the origin country. Changes in remittance costs, shifts in remittance channels, global exchange rate movements and unpredictable immigration controls in the migrant-destination countries pose risks to the forecasts. Much remains to be done to improve the forecast methodology, data on bilateral flows, and high-frequency monitoring of migration and remittance flows.

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Determinants and Macroeconomic Impact of Remittances in Sub-Saharan Africa

Abstract: This Working Paper should not be reported as representing the views of the IMF.

Cited by 153 publications

References 28 publications

The Effects of Remittances on Output Per Worker in Sub-Saharan Africa: A Production Function Approach

The Effects of Remittances on Output Per Worker in Sub-Saharan Africa: A Production Function Approach

Do Transfer Costs Matter for Foreign Remittances? A Gravity Model Approach

Forecasting migrant remittances during the global financial crisis

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