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The Effects of Remittances on Output per Worker in Sub-Saharan Africa: A Production Function Approach

Author

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  • John Ssozi

    () (Baylor University, USA)

  • Simplice Asongu

    () (Yaoundé/Cameroun)

Abstract

This paper uses a production function to examine the channels through which remittances affect output per worker in 31 Sub-Saharan Africa (SSA) countries from 1980-2010. We find that remittances directly increase output per worker if complemented with education. The indirect effects vary with the economic characteristics of the recipient nations: while remittances have increased human capital among the low-income nations, among the upper-middle-income nations, they have mostly increased total factor productivity, but are still inversely related to factor inputs among the lower-middle-income nations of SSA. Finally, remittances are more effective when institutional risk is reducing.

Suggested Citation

  • John Ssozi & Simplice Asongu, 2014. "The Effects of Remittances on Output per Worker in Sub-Saharan Africa: A Production Function Approach," Working Papers of the African Governance and Development Institute. 14/027, African Governance and Development Institute..
  • Handle: RePEc:agd:wpaper:14/027
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    References listed on IDEAS

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    Cited by:

    1. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2018. "Educational quality thresholds in the diffusion of knowledge with mobile phones for inclusive human development in sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 164-172.
    2. Simplice Asongu & Nicholas Odhiambo, 2018. "Doing Business and Inclusive Human Development in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 18/031, African Governance and Development Institute..
    3. Simplice Asongu & Nicholas Odhiambo, 2018. "Environmental Degradation and Inclusive Human Development in sub‐Saharan Africa," Working Papers of the African Governance and Development Institute. 18/017, African Governance and Development Institute..
    4. Asongu, Simplice & Biekpe, Nicholas & Tchamyou, Vanessa, 2018. "Remittances, ICT and Doing Business in Sub-Saharan Africa," MPRA Paper 88513, University Library of Munich, Germany.
    5. Simplice Asongu & Sara le Roux, 2018. "Understanding Sub-Saharan Africa’s Extreme Poverty Tragedy," Working Papers of the African Governance and Development Institute. 18/012, African Governance and Development Institute..
    6. Asongu, Simplice A. & Le Roux, Sara, 2017. "Enhancing ICT for inclusive human development in Sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 118(C), pages 44-54.
    7. Simplice Asongu & Ivo Leke, 2017. "External Flows and Inclusive Human Development in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 17/058, African Governance and Development Institute..
    8. Simplice Asongu, 2018. "CO2 emission thresholds for inclusive human development in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 18/023, African Governance and Development Institute..
    9. Efobi, Uchenna & Asongu, Simplice & Okafor, Chinelo & Tchamyou, Vanessa & Tanankem, Belmondo, 2016. "Diaspora Remittance Inflow, Financial Development and the Industrialisation of Africa," MPRA Paper 76121, University Library of Munich, Germany.
    10. Vanessa Tchamyou, 2018. "Education, Lifelong learning, Inequality and Financial access: Evidence from African countries," Working Papers of the African Governance and Development Institute. 18/003, African Governance and Development Institute..

    More about this item

    Keywords

    remittances; output per worker; total factor productivity; Sub-Saharan Africa;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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