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

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  • Ssozi, John
  • Asongu, Simplice

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

  • Ssozi, John & Asongu, Simplice, 2014. "The Effects of Remittances on Output per Worker in Sub-Saharan Africa: A Production Function Approach," MPRA Paper 64457, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:64457
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Simplice Asongu & Ivo Leke, 2017. "External Flows and Inclusive Human Development in Sub-Saharan Africa," Working Papers 17/058, African Governance and Development Institute..
    2. 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.
    3. 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.
    4. Simplice Asongu & Sara le Roux, 2018. "Understanding Sub-Saharan Africa’s Extreme Poverty Tragedy," Working Papers 18/012, African Governance and Development Institute..
    5. repec:eee:tefoso:v:129:y:2018:i:c:p:164-172 is not listed on IDEAS
    6. Simplice Asongu, 2018. "CO2 emission thresholds for inclusive human development in Sub-Saharan Africa," Working Papers 18/023, African Governance and Development Institute..
    7. 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.
    8. Vanessa Tchamyou, 2018. "Education, Lifelong learning, Inequality and Financial access: Evidence from African countries," Working Papers 18/003, African Governance and Development Institute..
    9. Asongu, Simplice A & Odhiambo, Nicholas M., 2018. "Environmental degradation and inclusive human development in Sub-Saharan Africa," Working Papers 23840, University of South Africa, Department of Economics.
    10. Simplice Asongu & Nicholas Biekpe & Vanessa S. Tchamyou, 2018. "Remittances, ICT and Doing Business in Sub-Saharan Africa," Working Papers 18/010, 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
    • 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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