Impact of Remittances on Poverty and Financial Development in Sub-Saharan Africa
By S. Gupta, Catherine A. Pattillo, Smita Wagh. Social Science Research Network, 2007
230 citations recorded by the source corpus.
This paper assesses the impact of the steadily growing remittance flows to sub-Saharan Africa (SSA). Though the region receives only a small portion of the total recorded remittances to developing countries, and the volume of aid flows to SSA swamps remittances, this paper finds that remittances, which are a stable, private transfer, have a direct poverty mitigating effect, and promote financial development. These findings hold even after factoring in the reverse causality between remittances, poverty and financial development. The paper posits that formalizing such flows can serve as an effective access point for "unbanked" individuals and households, and that the effective use of such flows can mitigate the costs of skilled out-migration in SSA.
View Paper: https://www.semanticscholar.org/paper/7968d8b90f83897ccf7277bd633277d02ff4e845
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
- Charles Amo Yartey
- Mihasonirina Andrianaivo
- E. Nyamongo
- Roseline Misati
- L. Kipyegon
- Lydia Ndirangu
- Mubinzhon Abduvaliev
- R. Bustillo
Citations in the corpus
- Understanding the Growth of African Financial Markets (2009, background): “Yartey (2007a) found that law and order, democratic accountability, and bureaucratic quality are important for stock market development in Africa.”
- Determinants and Macroeconomic Impact of Remittances in Sub-Saharan Africa (2009, unknown): “For example, income in the home country and financial deepening are likely to be correlated with the error terms because of the reverse causality from remittances to those variables (Gupta, Pattillo, and Wagh, 2007; and Giuliano and Ruiz-Arranz, 2005).”
- Impact of Migration on Economic and Social Development: A Review of Evidence and Emerging Issues (2011, unknown): “…America, Africa, South Asia and other regions suggests that remittances reduce the depth and severity of poverty, as well as indirectly stimulate economic activity (Adams 1991, Lachaud 1999, Fajnzylber & Lopez 2007, Adams 2006b, Gupta et al. 2007, Anyanwu and Erhijakpor 2010, Ajayi et al. 2009).”
- Impact of remittances on economic growth and poverty reduction amongst CIS countries (2019, methodology): “By contrast, we expect negative coefficients regarding to government consumption and inflation, suggesting that a high rate of domestic inflation may act as a proxy for uncertainty and risk and therefore discourage growth (Giuliano & Ruiz-Arranz, 2005; Gupta et al., 2007).”
- Remittances, financial development and economic growth in Africa (2012, background): “The earliest theoretical arguments in support of the role of financial development are found in Bagehot (1873), Schumpeter (1911) and more recently Hicks (1969). As shown by Schumpeter (1911) the services provided by the financial intermediaries are important for innovation and development. Schumpet”