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What Drives Remittance Inflows to Sub-Saharan Africa? A Dynamic Panel Approach

Author

Listed:
  • Francis Kemegue

    (Department of Economics, University of Pretoria)

  • Emmanuel Owusu-Sekyere

    () (Department of Economics, University of Pretoria)

  • Renee van Eyden

    () (Department of Economics, University of Pretoria)

Abstract

This paper investigates the factors that drive and constrain remittance inflows into SubSaharan Africa (SSA) using annual data for 35 SSA countries from 1980 to 2008, generalised method of moments by Arellano and Bover (1995) and LSDV with Driscoll and Kraay (1998) corrected standard errors. We find that when cross-sectional dependence of the error term and individual effects are controlled for, host country economic conditions override home country income in driving remittances to SSA The quality of financial service delivery and investment opportunities in the home country and exchange rate considerations are also significant to remittance inflows to SSA. This is more consistent with self interest motives for remittance inflows than altruism. However there are country level differences.

Suggested Citation

  • Francis Kemegue & Emmanuel Owusu-Sekyere & Renee van Eyden, 2011. "What Drives Remittance Inflows to Sub-Saharan Africa? A Dynamic Panel Approach," Working Papers 201128, University of Pretoria, Department of Economics.
  • Handle: RePEc:pre:wpaper:201128
    as

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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Emmanuel Owusu-Sekyere & Reneé van Eyden & Francis M Kemegue, 2014. "Remittances and the Dutch Disease in Sub-Saharan Africa: A Dynamic Panel Approach," Contemporary Economics, University of Finance and Management in Warsaw, vol. 8(3), September.
    2. Ahmed, Junaid & Martinez-Zarzoso, Inmaculada, 2014. "What drives bilateral remittances to Pakistan? A gravity model approach," Center for European, Governance and Economic Development Research Discussion Papers 209, University of Goettingen, Department of Economics.
    3. repec:gei:jnlfer:v:2:y:2017:i:1:p:40-55 is not listed on IDEAS
    4. Ebenezer A. Olubiyi & Kubrat O. Kehinde, 2015. "Does Exchange Rate Affect Remittances in Nigeria?," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 7(1), pages 031-045, June.
    5. Ahmed, Junaid & Martínez-Zarzoso, Inmaculada, 2015. "Do transfer costs matter for foreign remittances? A gravity model approach," Economics Discussion Papers 2015-12, Kiel Institute for the World Economy (IfW).
    6. repec:bla:worlde:v:40:y:2017:i:12:p:2875-2900 is not listed on IDEAS
    7. repec:spr:portec:v:16:y:2017:i:3:d:10.1007_s10258-017-0136-y is not listed on IDEAS
    8. Hrushikesh Mallick & Mantu Kumar Mahalik, 2016. "Motivating Factors Of Remittances Inflows Into Developing Asian Economies," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(04), pages 1-26, September.

    More about this item

    Keywords

    Migration; remittances; 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
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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