Determinants and Macroeconomic Impact of Remittances in Sub-Saharan Africa
October 1, 2009
Download PDF
More Formats on IMF eLibrary
Order a Print CopyDisclaimer: 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.
Subject: Financial sector development, Income, Multiple currency practices, Real exchange rates, Remittances
Keywords: do remittance, GDP, remittance, remittance flow, WP
Pages:
26
Volume:
2009
DOI:
Issue:
216
Series:
Working Paper No. 2009/216
Stock No:
WPIEA2009216
ISBN:
9781451873634
ISSN:
1018-5941
