The Effects of Remittances on Output per Worker in Sub-Saharan Africa: A Production Function Approach

John Ssozi and Simplice Asongu

No 14/027, Research Africa Network Working Papers from Research Africa Network (RAN)

Abstract: This paper uses a production function to examine the channels through which remittances affect output per worker in 31 Sub-Saharan Africa (SSA) countries from 1980-2010. We find that remittances directly increase output per worker if complemented with education. The indirect effects vary with the economic characteristics of the recipient nations: while remittances have increased human capital among the low-income nations, among the upper-middle-income nations, they have mostly increased total factor productivity, but are still inversely related to factor inputs among the lower-middle-income nations of SSA. Finally, remittances are more effective when institutional risk is reducing.

Keywords: remittances; output per worker; total factor productivity; Sub-Saharan Africa (search for similar items in EconPapers)
JEL-codes: F22 F24 F35 F43 F63 O15 O16 O43 O55 (search for similar items in EconPapers)
Pages: 33
Date: 2014-08
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Citations: View citations in EconPapers (3)

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http://publications.resanet.org/RePEc/abh/abh-wpap ... b-Saharan-Africa.pdf Revised version, 2016 (application/pdf)

Related works:
Journal Article: The Effects of Remittances on Output per Worker in Sub-Saharan Africa: A Production Function Approach (2016)
Working Paper: The Effects of Remittances on Output per Worker in Sub-Saharan Africa: A Production Function Approach (2014)
Working Paper: The Effects of Remittances on Output per Worker in Sub-Saharan Africa: A Production Function Approach (2014)
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