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Remittances and Economic Growth in Sub-Sahara African Countries

Tilahun, Samson LU (2011) NEKM01 20111
Department of Economics
Abstract
Remittances are getting wider attention in recent years because of the enormous increase in amounts. Remittances have already outshined the inflow of FDI, official development assistance, and portfolio flows for many developing countries. However there is no clear-cut understanding of its macro level importance to economic growth which arises because of shortage of study in the area. This study tries to unearth the impact of remittances on growth in the overall SSA area and regions within the SSA and contribute to increase the research in this field and in SSA region. The study used a panel data, consisting of 38 SSA countries over 30 years and employed OLS regression with fixed effects. The results of the overall SSA analysis show that... (More)
Remittances are getting wider attention in recent years because of the enormous increase in amounts. Remittances have already outshined the inflow of FDI, official development assistance, and portfolio flows for many developing countries. However there is no clear-cut understanding of its macro level importance to economic growth which arises because of shortage of study in the area. This study tries to unearth the impact of remittances on growth in the overall SSA area and regions within the SSA and contribute to increase the research in this field and in SSA region. The study used a panel data, consisting of 38 SSA countries over 30 years and employed OLS regression with fixed effects. The results of the overall SSA analysis show that remittances have positive impact on growth. However, there is a mixed result from the regional analysis. Results from Eastern, Central and Western African regions show remittances promote economic growth while result from Southern Africa shows remittances impede economic growth of this region. These results stayed robust when the definition of the variables was changed. (Less)
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author
Tilahun, Samson LU
supervisor
organization
course
NEKM01 20111
year
type
H1 - Master's Degree (One Year)
subject
keywords
remittances, economic growth, SSA, panel data
language
English
id
2155168
date added to LUP
2011-09-27 08:59:04
date last changed
2011-09-27 08:59:04
@misc{2155168,
  abstract     = {Remittances are getting wider attention in recent years because of the enormous increase in amounts. Remittances have already outshined the inflow of FDI, official development assistance, and portfolio flows for many developing countries. However there is no clear-cut understanding of its macro level importance to economic growth which arises because of shortage of study in the area. This study tries to unearth the impact of remittances on growth in the overall SSA area and regions within the SSA and contribute to increase the research in this field and in SSA region. The study used a panel data, consisting of 38 SSA countries over 30 years and employed OLS regression with fixed effects. The results of the overall SSA analysis show that remittances have positive impact on growth. However, there is a mixed result from the regional analysis. Results from Eastern, Central and Western African regions show remittances promote economic growth while result from Southern Africa shows remittances impede economic growth of this region. These results stayed robust when the definition of the variables was changed.},
  author       = {Tilahun, Samson},
  keyword      = {remittances,economic growth,SSA,panel data},
  language     = {eng},
  note         = {Student Paper},
  title        = {Remittances and Economic Growth in Sub-Sahara African Countries},
  year         = {2011},
}