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    Effect of remittances on poverty and financial development in Sub-Saharan Africa

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    Date
    2009
    Author
    Gupta, S.
    Pattillo, C. A.
    Wagh, S.
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    Abstract
    Remittances to Africa have been growing at a slower rate comparative to Latin America and East Asia but have still been shown to directly affect poverty. However, few studies have analyzed this impact at the aggregate level. This study completes an aggregate analysis of remittances using data beginning in 1980 on twenty-four Sub-Saharan African countries. Results indicated that remittances have positive effects on both poverty and financial development by augmenting household budgets and providing opportunities for entry into the formal financial market, respectively. As world-wide remittances continue to dwarf funding from international aid, it remains critical to predict, record, and facilitate their transfer through redirection to formal providers.
    URI
    http://hdl.handle.net/10919/69055
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    • Sustainable Agriculture and Natural Resource Management (SANREM) Knowledgebase [3994]

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