Arbeitspapier

The Effects of Remittances on Output per Worker in Sub-Saharan Africa: A Production Function Approach

This paper uses a production function to examine the channels through which remittances affect output per worker in 31 Sub-Saharan Africa (SSA) countries from 1980-2010. We find that remittances directly increase output per worker if complemented with education. The indirect effects vary with the economic characteristics of the recipient nations: while remittances have increased human capital among the low-income nations, among the upper-middle-income nations, they have mostly increased total factor productivity, but are still inversely related to factor inputs among the lower-middle-income nations of SSA. Finally, remittances are more effective when institutional risk is reducing.

Language
Englisch

Bibliographic citation
Series: AGDI Working Paper ; No. WP/14/027

Classification
Wirtschaft
International Migration
Remittances
Foreign Aid
Economic Growth of Open Economies
Economic Impacts of Globalization: Economic Development
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
Institutions and Growth
Economywide Country Studies: Africa
Subject
remittances
output per worker
total factor productivity
Sub-Saharan Africa

Event
Geistige Schöpfung
(who)
Ssozi, John
Asongu, Simplice A.
Event
Veröffentlichung
(who)
African Governance and Development Institute (AGDI)
(where)
Yaoundé
(when)
2014

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Ssozi, John
  • Asongu, Simplice A.
  • African Governance and Development Institute (AGDI)

Time of origin

  • 2014

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