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The impact of remittancess on poverty : What relations in Sub-saharan Africa and latin America ?

Aloui, Zouhaier (2019): The impact of remittancess on poverty : What relations in Sub-saharan Africa and latin America ?

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Abstract

This article examines the impact of international remittances on poverty in sub-Saharan Africa and Latin America between 1996-2016. The results of our regressions show that international remittances have a positive effect in reducing poverty in Latin America but not significant in sub-Saharan Africa. This relationship between international remittances and poverty is significantly different between sub-Saharan Africa and Latin America. This result implies that remittances play an important role in increasing household consumption and hence in reducing poverty. This supports our assertion that international remittances have more impact on poverty reduction in rich regions than in poor regions. This study shows that improvements in these attractiveness factors international remittances tend to decrease levels of poverty. It is also supported by the fact that in Sub-Saharan African countries, governments tend to invest in international remittances like other sources of external finance.

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