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Remittances And Health Outcomes In Sub-Saharan African Countries: Understanding The Role Of Financial Development And Institutional Quality

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  • Uweis Abdulahi Ali Bare
  • Yasmin Bani
  • Normaz Wana Ismail
  • Anitha Rosland

Abstract

Sub-Saharan Africa (SSA) is one of the highest recipients of remittances; however, this is inconsistent with the region’s growth and the state of its weak healthcare systems. This paper therefore analyses the effect of remittances on health outcomes for 39 selected SSA countries over the period 1996 to 2016. It considers the channels through which remittances affect health outcomes, including financial development and institutional quality. Using dynamic panel estimation, we find that remittances sustain health outcomes, while both financial development and institutional quality complement remittances in this respect. SSA countries should therefore continue to improve their financial sectors and develop the quality of institutions to an adequate level. Achieving sound financial systems and institutions would both allow and attract a substantial amount of remittances, benefitting human capital and health outcomes and alleviating poverty.

Suggested Citation

  • Uweis Abdulahi Ali Bare & Yasmin Bani & Normaz Wana Ismail & Anitha Rosland, 2021. "Remittances And Health Outcomes In Sub-Saharan African Countries: Understanding The Role Of Financial Development And Institutional Quality," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 66(229), pages 119-144, April – J.
    • Handle: RePEc:beo:journl:v:66:y:2021:i:229:p:119-144
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    More about this item

    Keywords

    remittances; health sustainability; financial development; institutions; SSA;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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