Determinants and Macroeconomic Impact of Remittances in Sub-Saharan Africa

27 Pages Posted: 13 Oct 2009

See all articles by Raju Singh

Raju Singh

International Monetary Fund (IMF)

Markus Haacker

International Monetary Fund (IMF) - Research Department

Kyung-woo Lee

affiliation not provided to SSRN

Date Written: October 2009

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

Suggested Citation

Singh, Raju and Haacker, Markus and Lee, Kyung-woo, Determinants and Macroeconomic Impact of Remittances in Sub-Saharan Africa (October 2009). IMF Working Paper No. 09/216, Available at SSRN: https://ssrn.com/abstract=1486534

Raju Singh

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Markus Haacker

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-4089 (Phone)
202-589-4089 (Fax)

Kyung-woo Lee (Contact Author)

affiliation not provided to SSRN

No Address Available

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