Long-run macroeconomic impact of international migrant remittances on human development in low-income countries: A panel analysis of sub-Saharan Africa

Adenutsi, Deodat E. (2009): Long-run macroeconomic impact of international migrant remittances on human development in low-income countries: A panel analysis of sub-Saharan Africa. Published in: Journal of International Economic Studies , Vol. 24, No. March (March 2010): pp. 113-132.

Abstract

In order to provide an empirical insight into the role of international migrant remittance inflows in low-income countries, this paper examines at the macro level, the long-run impact of international migrant remittance inflows on overall human development in Sub-Saharan Africa which has been well-known as a perennial net exporter of labour to the industrialized world since the colonial era. The fixed-effects balanced annual panel data estimation procedure for the period, 1987 to 2007, on 18 Sub-Saharan African countries was used for the empirical analysis. The paper finds that, contrary to the apprehension of the remittance-pessimistic developmental school, international migrant remittance inflows have a significant positive long-run impact on overall human development in low-income Sub-Saharan African countries. This evidence suggests that the essential role of international migrant remittance inflows on the socioeconomic development of Sub-Saharan Africa should not be undervalued in formulating any contemporary economic development strategy for the sub-region. It is, therefore, recommended that governments of the sub-region should pursue remittance-attracting policy as one of the macroeconomic policies to stimulate human development in the long run.

• Item Type: MPRA Paper
• Language: English
• Keywords: International Migrant Remittances; Human Development; Fixed-Effects Panel Data Analysis; Sub-Saharan Africa
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models; N - Economic History > N3 - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy > N37 - Africa ; Oceania; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources ; Human Development ; Income Distribution ; Migration; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity; F - International Economics > F2 - International Factor Movements and International Business > F24 - Remittances

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