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Do international remittances promote human development in poor countries? Empirical evidence from Sub-Saharan Africa

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  • Adenutsi, Deodat E.

Abstract

This paper examines the macroeconomic impact of inward international remittances on human-centered development in 15 Sub-Saharan African countries. Following the fixed-effects balanced panel data estimation procedure for the period, 1987 to 2007, the empirical results reveal that, indeed, international remittance inflows impact positively on human development in the long run. As per the empirical findings, the paper concludes that, given the irreversible high propensity to travel abroad among the productively active citizens of the sub-region in a bid to earn ‘a decent wage’, the relevant institutions and policymakers within the sub-region should devise appropriate strategies and policy framework to attract higher remittances from abroad. The empirical model and methodology used in this paper are relevant and, hence, can be applied in related fields of study.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 29347.

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Date of creation: 2010
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Handle: RePEc:pra:mprapa:29347

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Related research

Keywords: Remittances; Human Development; Fixed-Effects Panel Data Estimation; Sub-Saharan Africa; Developing Countries;

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References

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  1. Mckenzie, David & Rapoport, Hillel, 2007. "Network effects and the dynamics of migration and inequality: Theory and evidence from Mexico," Journal of Development Economics, Elsevier, vol. 84(1), pages 1-24, September.
  2. Gupta, Sanjeev & Pattillo, Catherine A. & Wagh, Smita, 2009. "Effect of Remittances on Poverty and Financial Development in Sub-Saharan Africa," World Development, Elsevier, vol. 37(1), pages 104-115, January.
  3. Bichaka Fayissa & Christian Nsiah, 2008. "The Impact of Remittances on Economic Growth and Development in Africa," Working Papers 200802, Middle Tennessee State University, Department of Economics and Finance.
  4. Edwards, Alejandra Cox & Ureta, Manuelita, 2003. "International migration, remittances, and schooling: evidence from El Salvador," Journal of Development Economics, Elsevier, vol. 72(2), pages 429-461, December.
  5. Lipton, Michael, 1980. "Migration from rural areas of poor countries: The impact on rural productivity and income distribution," World Development, Elsevier, vol. 8(1), pages 1-24, January.
  6. Adams, Richard H., Jr., 1991. "The effects of international remittances on poverty, inequality, and development in rural Egypt:," Research reports 86, International Food Policy Research Institute (IFPRI).
  7. Gustafsson, Bjorn & Makonnen, Negatu, 1993. "Poverty and Remittances in Lesotho," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 2(1), pages 49-73, May.
  8. Lucas, Robert E B, 1987. "Emigration to South Africa's Mines," American Economic Review, American Economic Association, vol. 77(3), pages 313-30, June.
  9. Adams, Richard H. Jr., 2006. "Remittances and poverty in Ghana," Policy Research Working Paper Series 3838, The World Bank.
  10. repec:ebl:ecbull:v:15:y:2008:i:1:p:1-11 is not listed on IDEAS
  11. Adams, Richard Jr. & Page, John, 2005. "Do international migration and remittances reduce poverty in developing countries?," World Development, Elsevier, vol. 33(10), pages 1645-1669, October.
  12. Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
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Cited by:
  1. Sule Akkoyunlu, 2010. "Can trade, aid, foreign direct investments and remittances curb migration from Turkey?," Migration Letters, Transnational Press London, UK, vol. 7(2), pages 144-158, October.
  2. Ibrahim Sirkeci & Jeffrey H. Cohen & Dilip Ratha, 2012. "Migration and Remittances during the Global Financial Crisis and Beyond," World Bank Publications, The World Bank, number 13092, October.

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