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Effect of Remittances on Poverty and Financial Development in Sub-Saharan Africa

  • Gupta, Sanjeev
  • Pattillo, Catherine A.
  • Wagh, Smita
Registered author(s):

    Summary This paper assesses the effect of the steadily growing remittance flows to sub-Saharan Africa. Though the region receives only a small portion of the total recorded remittances to developing countries, and the volume of aid flows to sub-Saharan Africa swamps remittances, this paper finds that remittances, which are a stable, private transfer, have a direct poverty-mitigating effect, and promote financial development. These findings hold even after factoring in the reverse causality between remittances, poverty, and financial development. The paper posits that formalizing such flows can serve as an effective access point for "unbanked" individuals, and households.

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    File URL: http://www.sciencedirect.com/science/article/B6VC6-4T2S00P-2/2/b7a168c9a3088ddfe7a8117053e900ef
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    Article provided by Elsevier in its journal World Development.

    Volume (Year): 37 (2009)
    Issue (Month): 1 (January)
    Pages: 104-115

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    Handle: RePEc:eee:wdevel:v:37:y:2009:i:1:p:104-115
    Contact details of provider: Web page: http://www.elsevier.com/locate/worlddev

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