GROWTH OF FINANCIAL DEVELOPMENT IN SUB SAHARAN AFRICAN (SSA) REGION THROUGH MIGRANT REMITTANCES
DOI:
https://doi.org/10.29121/granthaalayah.v7.i3.2019.945Keywords:
Remittances, Sub-Saharan Africa, Growth, Financial DevelopmentAbstract [English]
This Paper investigates the impact of remittances on the financial development of countries in the sub-Saharan Africa using panel data analysis from 1985 to 2013. Several Literature has been written on the impact of remittance on growth and on poverty in sub-Saharan Africa however few have critically analysed the impact of remittances on financial development in the region. Using two definitions of financial development, the ratio of money supply to GDP (M2/GDP), and the ratio of domestic credit to GDP (DC/GDP), this paper finds that remittances have a positive effect of financial development. However, the size of the effect depends on definition of financial development that is used in the analysis.
Downloads
References
Adams, R. (2006). Remittances and poverty in Ghana. Washington, DC: World Bank Policy Research Paper 3838. DOI: https://doi.org/10.1596/1813-9450-3838
Adelman, I., & Taylo, J. (1990). Is Structural Adjustment with a Human Face possible? the case of Mexico. Journal of Development Studies, 26(3), 387-407. DOI: https://doi.org/10.1080/00220389008422161
Aggarwal, R. A.-K. (2011). Do remittances promote financial development? Journal of Development Economics (96.2), 255-264. DOI: https://doi.org/10.1016/j.jdeveco.2010.10.005
Asli, D.-K., & Ross, R. L. (2009). Finance and Inequality: Theory and Evidence. Massachusetts: National Bureau of Economic Research.
Azam, Jean-Paul, & Gubert, F. (2006). Migrants' remittances and the household in Africa: a review of evidence. Journal of African Economies, 15(suppl 2), 426-462. DOI: https://doi.org/10.1093/jae/ejl030
Bouhga-Hagbe, J. (2004). A theory of workers remittance with an application to morroco. Washington: IMF. DOI: https://doi.org/10.5089/9781451859898.001
Campos, R., & Lardé de Palomo , A. (2002). “Invirtamos en Educación para Desafiar el Crecimiento Económico y la Pobreza. Fundación Salvadoreña para el Desarrollo.
Carling, O. J. (2004). Emigration, return, and development in Cape Verde: The impact of closing border. Population, Society, and Place. DOI: https://doi.org/10.1002/psp.322
Catalina, A.-D., & Susan, S. P. (2004). Workers’ Remittances and the Real Exchange Rate:A Paradox of Gifts. World Development, 32(8), 1407-1417. DOI: https://doi.org/10.1016/j.worlddev.2004.02.004
Catrinescu, N., Miguel, L.-L., & Bryce, B. Q. (2008). Remittances, Institutions, and Economic Growth. World Development, 37, 81-92. DOI: https://doi.org/10.1016/j.worlddev.2008.02.004
Chami, R., Fullenkamp, C., & Jahjah, S. (2005). Are Immigrant Remittance Flows a source for capital development. IMF Staff Papers.
Dean, Y. (2005). International Migration, Human Capital, and Entrepreneurship: Evidence from Philippine Migrants' Exchange Rate Shocks. Michigan: National Bureau of Economic Research.
Dilip, R., & Sonia, P. (2011). Harnessing Diasporas. IMF.
Dilip, R., Supriyo, D., Ervin, D., Christiani, E.-Z., Sonia, P., Hanspeter, W., et al. (2014). Migration and development brief: Migration and Remittances: Recent Developments and Outlook. Washington: World Bank.
Faini, R. (2002). Development, Trade, and Migration. Revue d’Économie et du Développement, 85-116. DOI: https://doi.org/10.3917/edd.161.0085
Funkhouser, E. (1992). Migration from Nicaragua: Some Recent Evidence. World- Development, 20(8), 1209–1218. DOI: https://doi.org/10.1016/0305-750X(92)90011-J
Gupta, S. C. (2007). Impact of remittances on poverty and financial development in Sub-Saharan Africa. nternational Monetary Fund.
IMF. (2005). Two current issues facing developing countries: Workers remittances and economic development.. World Economic Outlook.
Kireyev, A. (2006). The Macroeconomics of Remittances:The Case of Tajikistan. washinton: International Monetary Fund. DOI: https://doi.org/10.5089/9781451862621.001
Manuel, O., & Rachel, F. (2006). Leveraging effrots on remittances and financial intermidiation. Inter-American Development Bank.
Misati, R., & Nyamongo, E. (2011). Financial development and private investment in Sub-Saharan Africa. Journal of economics and buisness, 63(2), 139–151. DOI: https://doi.org/10.1016/j.jeconbus.2010.10.001
Paola, P., & Marta, M.-A. (2009). Remittances, financial development, and growth. journal of development economics, 90, 144–152. DOI: https://doi.org/10.1016/j.jdeveco.2008.10.005
Petra, V., Tomas, H., & Roman , H. (2013). Financial Development and Economic Growth:A Meta-Analysis. michigan: William Davidson Institute.
Quartey, P., & Blankson, T. (2004). Do migrant remittances minimize the effect of macro-volatility on the poor in Ghana?
Rapoport, H., & Docquier, F. (2006). The Economics of Migrants’ Remittances. Handbook of the Economics of, Volume 2, 1135-1199. DOI: https://doi.org/10.1016/S1574-0714(06)02017-3
Ratha, D. (2003). Worker Remittances: An Important and Stable Source of External Development Finance, Global Development Finance. world bank.
Ratha, D., S, M., & S, P. (2008). Beyond aid: New sources and innovative mechanisms for financing development in sub-Saharan Africa. Washington: World Bank. DOI: https://doi.org/10.1596/1813-9450-4609
Richard, H., Adams, J., & John, P. (2005). Do International Migration and Remittances Reduce Poverty in Developing Countries? World Development, 33(10), 1645–1669. DOI: https://doi.org/10.1016/j.worlddev.2005.05.004
Solimano, A. (2003). Workers Remittances to the Andean Region: Mechanisms, Costs and Development impact.
Sonia, P., Mario, N., & Dilip, R. (2011). Migration and Remittances Household Surveys in SubSaharan africa: Methodological Aspects and Main Findings. World Bank.
Spatafora, N. (2005). Two Current Issues Facing Developing Countries. IMF.
Valpy, F. (2006). Financial Development and Economic Growth: A Critical View. World Economic and Social Survey.
Woodruff, C., & zenteno, R. (2004). Remittances and Microenterprises in Mexico. IR/PS Working Paper.
World Bank. (2011). Migration and Remittances Fact Book 2011. Washington, DC: The International Bank for Reconstruction and Development (IBRD)/ World Bank.
World Bank. (2013). Migration and Development Brief. World Bank.
Yang, D. (2008). International migration, remittances and household investment: Evidence from Philippines migrants’ exchange Rate shocks. The Economic Journal,118.528, 591-630. DOI: https://doi.org/10.1111/j.1468-0297.2008.02134.x
Downloads
Published
How to Cite
Issue
Section
License
With the licence CC-BY, authors retain the copyright, allowing anyone to download, reuse, re-print, modify, distribute, and/or copy their contribution. The work must be properly attributed to its author.
It is not necessary to ask for further permission from the author or journal board.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.