Out of inequality and poverty: Evidence for the effectiveness of remittances in Sub-Saharan Africa

Eric Akobeng

Research output: Contribution to journalArticlepeer-review

68 Citations (Scopus)

Abstract

This paper takes a new look, from a macro perspective, at the issue of remittances effectiveness. An important point of departure for this study is the adoption of poverty reduction, as contrasted with economic growth, as the metric for measuring remittances effectiveness. By controlling for time-invariant country-specific effects and endogeneity, I find that remittances reduce poverty, but the size of the poverty reduction depends on how poverty is being measured. Additionally, remittances have income-equalizing effects. A well-functioning financial sector enhances remittances effectiveness in Sub-Saharan Africa.

Original languageEnglish
Pages (from-to)207-223
Number of pages17
JournalQuarterly Review of Economics and Finance
Volume60
DOIs
Publication statusPublished - 1 May 2016
Externally publishedYes

Keywords

  • Finance
  • Inequality
  • Poverty
  • Remittances

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