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The Cyclicality Of Remittances In Sub-Saharan Africa

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  • EMMANUEL K.K. LARTEY

    (California State University, Fullerton, USA)

Abstract

This paper investigates the cyclicality of remittances to make inferences about whether they are sent for altruistic or self-interest reasons. The results show that remittances are procyclical, and therefore, do not support the general altruistic motive for sending remittances to sub-Saharan Africa. The results also do not lend credence to the portfolio choice hypothesis. Thus, the findings suggest that remittances to the sub-region may be driven by some other self-interest motives or family arrangements. These results, however, do not diminish the fact that remittances remain an important source of external finance to the sub-region, as evidenced in the literature.

Suggested Citation

  • Emmanuel K.K. Lartey, 2016. "The Cyclicality Of Remittances In Sub-Saharan Africa," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 41(1), pages 1-18, March.
  • Handle: RePEc:jed:journl:v:41:y:2016:i:1:p:1-18
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    References listed on IDEAS

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    1. M. Piracha & Y. Zhu, 2012. "Precautionary savings by natives and immigrants in Germany," Applied Economics, Taylor & Francis Journals, vol. 44(21), pages 2767-2776, July.
    2. Emmanuel K.K. Lartey, 2013. "Remittances, investment and growth in sub-Saharan Africa," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(7), pages 1038-1058, October.
    3. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, in: S. Kolm & Jean Mercier Ythier (ed.), Handbook of the Economics of Giving, Altruism and Reciprocity, edition 1, volume 1, chapter 17, pages 1135-1198, Elsevier.
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    6. Bjuggren, Per-Olof & Dzansi, James & Shukur, Ghazi, 2010. "Remittances and Investment," Working Paper Series in Economics and Institutions of Innovation 216, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    7. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-918, October.
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    Cited by:

    1. Éric Rougier & Nicolas Yol, 2019. "The volatility effect of diaspora's location," The World Economy, Wiley Blackwell, vol. 42(6), pages 1796-1827, June.
    2. Abbas, Syed Ali & Selvanathan, Eliyathamby A. & Selvanathan, Saroja & Bandaralage, Jayatilleke S., 2021. "Are remittances and foreign aid interlinked? Evidence from least developed and developing countries," Economic Modelling, Elsevier, vol. 94(C), pages 265-275.

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    More about this item

    Keywords

    Remittances; Institutional Quality; GDP per Capita Growth; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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