You can manage bookmarks using lists, please log in to your user account for this.
Media type:
E-Article
Title:
What drives international remittances to Africa : Altruism, self-interest or the institutional environment?
:
Altruism, self-interest or the institutional environment?
Contributor:
Nnyanzi, John Bosco
Published:
Emerald, 2016
Published in:
African Journal of Economic and Management Studies, 7 (2016) 3, Seite 397-418
Language:
English
DOI:
10.1108/ajems-07-2013-0067
ISSN:
2040-0705
Origination:
Footnote:
Description:
PurposeThe purpose of this paper is to investigate the macro-economic and institutional drivers of remittance inflows to Africa.Design/methodology/approachThe paper uses an enhanced gravity model in a random effects framework to test two hypotheses dominant in literature as well as the institutional quality hypothesis. A bilateral data set is created from the most recent available remittance data set to afford the capture of the impact of the selected macro-economic variables from both the host and recipient countries.FindingsThe results provide support for the trio hypotheses. A key finding is the co-existence of altruism and self-interest motives. Also, control of corruption, financial development and a reduction in unofficial economic activity are observed to facilitate remittance inflows. The authors confirm the resilience of remittances during the global crisis and document a positive significant relationship between remittance inflows on the one hand and host migration stock, age dependency, etc., on the other.Practical implicationsThis paper generates various insights in the design of relevant macro-economic and institutional policies to enhance remittance inflows and the productive use of the same for purposes of economic growth and development via poverty reduction and secure resource flow.Originality/valueThe majority of previous studies on the determinants of remittance inflows have basically focussed on the microeconomic variables, an approach that could understate the macro-economic impact of remittances and lead to inadequate policy formulation. The use of an enhanced gravity model on a newly created bilateral data set in the analysis is a nuance in the economics of remittances. Besides, previous studies have often ignored the institutional environment as critical in the remittance-determinant model.