Remittances and Institutions: What Effects on Economic Growth in Sub-Saharan Africa? — Oak Academic Publishing
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Remittances and Institutions: What Effects on Economic Growth in Sub-Saharan Africa?
Business and Social Science School, International University of Grand-Bassam, Grand-Bassam, Côte d’Ivoire
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Laboratory for Analysis and Research in Economics and Management (LAREG), Department of Economics, University Jean Lorougnon Guédé, Daloa, Côte d’Ivoire
1 Business and Social Science School, International University of Grand-Bassam, Grand-Bassam, Côte d’Ivoire
2 Laboratory for Analysis and Research in Economics and Management (LAREG), Department of Economics, University Jean Lorougnon Guédé, Daloa, Côte d’Ivoire
Migrant remittances are a major and stable source of finance for many developing countries. This study re-examines the relationship between migrant remittances and economic growth in Sub-Saharan Africa (SSA) over the period 2005-2020, taking into account the role of institutional governance. The results obtained by the FMOLS and DOLS estimators suggest that remittances have a negative effect on economic growth in sub-Saharan Africa. However, when the quality of institutions is taken into account, this effect is reduced. Consequently, governments and public decision-makers should implement transparent regulatory frameworks to effectively manage remittances and develop programs to raise awareness among remittance recipients of the need to invest in economic activities.
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