IMPACT OF REMITTANCES ON ECONOMIC GROWTH OF SUB-SAHARA AFRICA: A SYSTEM GMM APPROACH
Ibrahim Baba Iya and Iliya James
Volume 9 Issue 2
Abstract
The study examined the impact of remittances on economic growth of sub-Sahara Africa. A system-GMM approach of empirical analysis was employed given the inflows of remittances in recent times in sub-Sahara Africa. The study employed Sys-GMM estimation technique for the forty-eight (48) sub-Sahara African countries. The result of the investigation showed that remittances and population are positive but has no significant impact on economic growth of sub-Sahara Africa countries. The result also found that exports is statistically significant and therefore has impact on economic growth of SSA. The study recommends that government in sub-Sahara Africa countries should develop a policy to ensure migrants sending money to home countries should channel it through official means and the money sent to home countries should be mandated to be invested it in a productive business. Key words: Remittance, Economic Growth, Official Development Assistance, SSA and GMM
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