Remittances, Foreign Aid and Private Consumption in Sub-Saharan Africa (SSA): A System GMM Estimation

Adelowokan, Oluwaseyi and Adesoye, Adesola and Akpa, Emeka and Maku, Olukayode (2020): Remittances, Foreign Aid and Private Consumption in Sub-Saharan Africa (SSA): A System GMM Estimation. Published in: KIU Journal of Social Sciences , Vol. 5, No. 4 (27 December 2020): pp. 67-76.

Abstract

The question of whether remittances and foreign aid at the macro level impact private consumption in SSA has been explored in this study. Twenty-nine (29) SSA countries were sampled for the study from 2002 to 2017. The System Generalized Method of Moment (SGMM) estimator was applied in the study to account for the dynamics in the model. Empirical evidence showed that foreign aid and remittances exerted positive but insignificant impact on private consumption.

• Item Type: MPRA Paper
• Language: English
• Keywords: Remittances, Foreign Aid, Private Consumption, System GMM
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E21 - Consumption ; Saving ; Wealth; F - International Economics > F2 - International Factor Movements and International Business > F24 - Remittances; F - International Economics > F3 - International Finance > F35 - Foreign Aid

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