Accepted paper:

Remittances, economic growth and household welfare nexus in sub Saharan Africa


Sarah Edewor (Federal University of Agriculture, Abeokuta)
Agatha Ogbe (Federal University of Agriculture, Abeokuta)
Oyinlola Ogunpaimo (Federal University of Agriculture, Abeokuta)

Paper short abstract:

The paper addresses the effect of migrant remittances on economic growth and household welfare in sub Saharan Africa from 1990 to 2017. The study revealed that household welfare and economic growth was significantly affected by migrant remittances and other macroeconomic variables in the long run.

Paper long abstract:

Out migration remains an integral part of many African countries. Its occurrence may arise due to natural or unnatural causes altogether linked to a search for greener pastures and favourable working conditions. Previous studies have shown that remittances cannot be divorced from migration because remittances will not exist without the decision to migrate. These studies have also reiterated that the decision to migrate may have major impact on development and growth hence the need for researchers to critically examine its effects on economic growth and welfare. This paper used data from the World Development Indicators for 48 sub Saharan countries in order to analyse the effect of remittances on economic growth and household welfare. The paper specifically sought to describe the trend of migration and remittance inflow into the region as well as determine the drivers of economic growth and household welfare. Trade openness, investment, remittances and foreign direct investments were regressed against Gross Domestic Product (a proxy for economy growth) to determine the factors that affect economic growth. Similarly, remittances, gross savings, gross domestic income, Gross Domestic Product per capita and household members that contribute to household income were fitted against consumption expenditure (a proxy for household welfare) to determine the factors affecting household welfare. Our findings revealed that migrant remittance is one of the main drivers of economic growth and household welfare in Africa Findings from our study will serve to inform and guide policy makers in formulating policies that will promote the developmental process in the region.

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Large-scale migration, remittances and development: historical and contemporary evidence [paper]