The political economy of remittances:the case of Sub-Saharan Africa
Judit Kiss ()
Additional contact information
Judit Kiss: Institute of World Economics, Centre for Economic and Regional Studies, ELRN
No 270, IWE Working Papers from Institute for World Economics - Centre for Economic and Regional Studies
The aim of the paper is to introduce and analyse the positive and negative micro- and macroeconomic effects of remittances in its complexity, in the migration-remittances- development context and to draw the overall balance from a political economy perspective in the case of Sub-Saharan Africa. The impact of remittances is mainly determined by the motivation to remit and the determinants of remittances. In the case of Africa, the main motivation is still altruism mixed with self-interest based on endogenous migration-, exchange- and portfolio- approaches with countercyclical and procyclical nature. The size and frequency of fixed and discretionary remittances inflow depend on the stock, type, legal status, personal character, individual behaviour, qualification and educational attainment of migrants, the political and economic situation of the host and the home country, and the transaction costs. The micro- and macroeconomic impacts of the yearly 50 billion remittances inflow is analysed according to remittance-developmental pluralist school of thought where the causes and the use of remittances are also considered. Though the results are not in all cases straightforward, Africa should promote and sustain the inflow of remittances as an alternative, non-debt generating source of financing development and strengthen the positive impact on economic growth, savings and investment, financial and human development, poverty and inequality reduction, and minimize/handle the negative consequences, like corruption, inflation, moral hazard, brain drain, Dutch disease
Keywords: Sub-Saharan Africa; remittances; micro and macroeoconomic impacts (search for similar items in EconPapers)
JEL-codes: F (search for similar items in EconPapers)
Pages: 48 pages
New Economics Papers: this item is included in nep-dev, nep-fdg and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:iwe:workpr:270
Access Statistics for this paper
More papers in IWE Working Papers from Institute for World Economics - Centre for Economic and Regional Studies Contact information at EDIRC.
Bibliographic data for series maintained by Kanász Mária ().