Long-run macroeconomic impact of international migrant remittances on human development in low-income countries: A panel analysis of sub-Saharan Africa

In order to provide an empirical insight into the role of international migrant remittance inflows in low-income countries, this paper examines at the macro level, the long-run impact of international migrant remittance inflows on overall human development in Sub-Saharan Africa which has been well-known as a perennial net exporter of labour to the industrialized world since the colonial era. The fixed-effects balanced annual panel data estimation procedure for the period, 1987 to 2007, on 18 Sub-Saharan African countries was used for the empirical analysis. The paper finds that, contrary to the apprehension of the remittance-pessimistic developmental school, international migrant remittance inflows have a significant positive long-run impact on overall human development in low-income Sub-Saharan African countries. This evidence suggests that the essential role of international migrant remittance inflows on the socioeconomic development of Sub-Saharan Africa should not be undervalued in formulating any contemporary economic development strategy for the sub-region. It is, therefore, recommended that governments of the sub-region should pursue remittance-attracting policy as one of the macroeconomic policies to stimulate human development in the long run.