Determinants and Macroeconomic Impact of Remittances in Sub-Saharan Africa

Author/Editor:

Raju J Singh ; Kyung-woo Lee ; Markus Haacker

Publication Date:

October 1, 2009

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The paper investigates the determinants and the macroeconomic role of remittances in sub-Saharan Africa, assembling the most comprehensive dataset available so far on remittances in the region and incorporating data on the diaspora. It finds that remittances are larger for countries with a larger diaspora or when the diaspora is located in wealthier countries, and that they behave countercyclically, consistent with a role as a shock absorber. Although the effect of remittances in growth regressions is negative, countries with well functioning domestic institutions seem nevertheless to be better at unlocking the potential for remittances to contribute to faster economic growth.

Series:

Working Paper No. 2009/216

Subject:

Financial sector development Income Multiple currency practices Real exchange rates Remittances

English

Publication Date:

October 1, 2009

ISBN/ISSN:

9781451873634/1018-5941

Stock No:

WPIEA2009216

Pages:

26

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