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

TR Number

Date

2009

Journal Title

Journal ISSN

Volume Title

Publisher

Elsevier Ltd

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.

Description

Metadata only record

Keywords

Globalization, International remittances, Economic analyses, Economic policy, Family, Poverty, Financial development, Sub-Saharan Africa, Aggregate analysis, Governance

Citation

World Development 37(1): 104-115