The changing impact of macroeconomic environment on remittance inflows in sub-Saharan Africa
AbstractThis paper identifies the core macroeconomic factors responsible for explaining the changing levels in international remittances received by SSA countries. A set of annual panel data on 36 SSA countries, covering 1980-2009, was used in a ‘system’ Generalised Method of Moments following Blundell and Bond (1998) dynamic panel-data estimation technique. In order to provide a more detailed insight into the possible dynamics of varying impact of macroeconomic variables that explain remittances received in SSA, decade-based (1980-89, 1990-99, and 2000-09), as well as an overall study period, 1980-2009, estimations were carried out. It was found that both migrant home-country and host-country macroeconomic environment impact on remittance inflows in SSA with a varying impact overtime. In absolute terms, generally, whilst the impact of real exchange rate, migrant income, and institutional quality has been increasing on remittances overtime, the effects of family income and the rate of inflation has be decreasing overtime
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 37067.
Date of creation: Jan 2011
Date of revision:
Publication status: Published in Journal of Academic Research in Economics 2.3(2011): pp. 136-167
Migrant; Remittances; Macroeconomic Policy; system Dynamic GMM Panel Estimation;
Other versions of this item:
- Deodat E. Adenutsi & Meshach J. Aziakpono & Matthew K. Ocran, 2011. "The Changing Impact Of Macroeconomic Environment On Remittance Inflows In Sub-Saharan Africa," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 3(2 (July)), pages 136-167.
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- F24 - International Economics - - International Factor Movements and International Business - - - Remittances
This paper has been announced in the following NEP Reports:
- NEP-AFR-2012-03-14 (Africa)
- NEP-ALL-2012-03-14 (All new papers)
- NEP-MAC-2012-03-14 (Macroeconomics)
- NEP-MIG-2012-03-14 (Economics of Human Migration)
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