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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.

Suggested Citation

  • Adenutsi, Deodat E., 2010. "Do international remittances promote human development in poor countries? Empirical evidence from Sub-Saharan Africa," MPRA Paper 29347, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:29347
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    File URL: https://mpra.ub.uni-muenchen.de/29347/1/MPRA_paper_29347.pdf
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    References listed on IDEAS

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    1. Adams, Richard H. Jr., 2006. "Remittances and poverty in Ghana," Policy Research Working Paper Series 3838, The World Bank.
    2. 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.
    3. 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.
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    5. Bichaka Fayissa & Christian Nsiah, 2010. "The Impact of Remittances on Economic Growth and Development in Africa," The American Economist, Sage Publications, vol. 55(2), pages 92-103, November.
    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. 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.
    8. 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.
    9. Lucas, Robert E B, 1987. "Emigration to South Africa's Mines," American Economic Review, American Economic Association, vol. 77(3), pages 313-330, June.
    10. 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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    12. repec:ebl:ecbull:v:15:y:2008:i:1:p:1-11 is not listed on IDEAS
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    Cited by:

    1. Sule Akkoyunlu, 2012. "Dış ticaret, ekonomik yardım, doğrudan yabancı yatırımlar ve göçmen dövizleri Türkiye'den olan göçü frenleyebilir mi?," Migration Letters, Transnational Press London, UK, vol. 9(4), pages 311-327, December.
    2. Muhammad Qasim & Amatul Razzaq Chaudhary, 2015. "Determinants of Human Development Disparities: A Cross District Analysis of Punjab, Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 427-446.
    3. repec:pid:journl:v:55:y:2016:i:4:p:657-673 is not listed on IDEAS
    4. 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, September.
    5. 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.

    More about this item

    Keywords

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

    JEL classification:

    • I00 - Health, Education, and Welfare - - General - - - General
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

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