Les transferts de fonds des migrants contribuent-ils à l'inclusivité de la croissance en Afrique Subsaharienne?

Cha'ngom, Narcisse and Tamokwe Piaptie, Georges Bertrand (2018): Les transferts de fonds des migrants contribuent-ils à l'inclusivité de la croissance en Afrique Subsaharienne?

Abstract

The purpose of this study is to assess the contribution of remittances on the improvement of inclusive growth in sub-Saharan Africa. The role of institutions is highlighted through three indicators from International Country Risk Guide (IRCG) such as investment profile, control of corruption and law and order. Estimates of panel macroeconomic data over the period 1985-2014 with 5 years intervals are made using the System Generalized Method of Moment (SGMM). Inclusive growth is captured by the quality growth index (QGI) that we have calculated for the 24 countries of our sample, following closely the Mlachila et al (2014) approach. Our results suggest that remittances enhance inclusive growth in Sub Saharan Africa. More precisely, a 10% increase in remittances leads to a 0.2%; 0.15% and 0.33% increase in the quality growth index depending on different specifications. When taking into account institutional context, only “law and order” enhance the ability of remittances to promote inclusive growth in SSA. These results indicate that governments should not only create conditions in order to attract more remittances, but additional incentives (better institutions) are needed to get beneficiary households and individuals to use remittances productively and thus, they would better contribute to inclusive growth which is nowadays one of the most important solution to a deep reduction of poverty and inequality.

• Item Type: MPRA Paper
• English Title: Do remittances contribute to inclusive growth in Subsaharan Africa?
• Language: French
• Keywords: remittances, inclusive growth, institutions, SGMM, Sub Saharan Africa
• Subjects: F - International Economics > F6 - Economic Impacts of Globalization > F62 - Macroeconomic Impacts; F - International Economics > F6 - Economic Impacts of Globalization > F63 - Economic Development; F - International Economics > F6 - Economic Impacts of Globalization > F65 - Finance; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth

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