Remittances and Value Added across Economic sub-sectors in Sub-Saharan Africa

Simplice Asongu and Nicholas Odhiambo

No 21/002, Working Papers from European Xtramile Centre of African Studies (EXCAS)

Abstract: This research assesses the relevance of enhancing remittances on value added across economic sectors in sub-Saharan Africa for the period 1980 to 2014 using the Generalised Method of Moments. First, no significant net effects on added value to the agricultural sector are apparent. Second, enhancing remittances engenders a positive net effect on added value to the manufacturing sector. Third, there are negative net effects on added value to the service sector. Given that the unfavourable net incidence of remittances to the service sector is associated with a positive marginal or conditional effect, the analysis is extended by computing thresholds at which remittances induce net positive effects on added value to the service sector. The extended analysis shows that a remittance threshold of 48.5% of GDP is the critical mass needed for further enhancement of remittances to engender positive net effects on value added to the service sector.

Keywords: Economic Output; Remitances; Sub-Saharan Africa (search for similar items in EconPapers)
JEL-codes: E23 F24 F30 O16 O55 (search for similar items in EconPapers)
Pages: 24
Date: 2021-01
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Forthcoming: Quality & Quantity

Downloads: (external link)
http://publications.excas.org/RePEc/exs/exs-wpaper ... b-Saharan-Africa.pdf Revised version, 2021 (application/pdf)

Related works:
Journal Article: Remittances and value added across economic sub-sectors in Sub-Saharan Africa (2022)
Working Paper: Remittances and Value Added across Economic sub-sectors in Sub-Saharan Africa (2021)
Working Paper: Remittances and Value Added Across Economic Sub-Sectors in Sub-Saharan Africa (2021)
Working Paper: Remittances and Value Added across Economic sub-sectors in Sub-Saharan Africa (2021)
Working Paper: Remittances and Value Added across Economic sub-sectors in Sub-Saharan Africa (2021)
Working Paper: Remittances and value added across economic sub-sectors in Sub-Saharan Africa (2021)
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