Determinants and Macroeconomic Impact of Remittances in Sub-Saharan Africa

Lee, Kyung-woo, Markus Haacker and Raju Jan SINGH ()

No 09/216, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: Cross country analysis; Developing countries; Economic growth; Economic models; Sub-Saharan Africa; Workers remittances (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr, nep-dev, nep-fdg and nep-mig
Date: 2009-10-02

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Persistent link: http://EconPapers.repec.org/RePEc:imf:imfwpa:09/216

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