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Remittance Inflows to Sub-Saharan Africa: The Case of SADC

Author

Listed:
  • Renee van Eyden

    (Department of Economics, University of Pretoria)

  • Emmanuel Owusu-Sekyere

    (Department of Economics, University of Pretoria)

  • Francis Kemegue

    (Department of Economics, University of Pretoria)

Abstract

This paper investigates the factors that drive or constrain remittances from South Africa to the countries in the Southern African Development Cooperation (SADC) region. Using annual data for 10 SADC countries from 1994 to 2008, System GMM by Arellano and Bover (1995) and seemingly unrelated regressions by Zellner (1962), we find that when cross-sectional dependence and individual effects are controlled for, the quality of financial service delivery, investment opportunities in the home country and migrant expectations of home country exchange rates are the main drivers of remittance inflows to the SADC countries in the panel. However country-specific differences exist.

Suggested Citation

  • Renee van Eyden & Emmanuel Owusu-Sekyere & Francis Kemegue, 2011. "Remittance Inflows to Sub-Saharan Africa: The Case of SADC," Working Papers 201127, University of Pretoria, Department of Economics.
    • Handle: RePEc:pre:wpaper:201127
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    References listed on IDEAS

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    Cited by:

    1. Chantha Hor & Pheara Pheang, 2017. "Analysis Determinant Factors Effect on Migrant Workers' Remittances Flow to the CLMV Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 202-207.
    2. Oludele Akinloye Akinboade & Anrich Daseman & Trevor Taft & Victor M.S Molobi, 2017. "Regulation, Cross Border Migrants and the Choice of Remittance Channels in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 9(2), pages 201-214.
    3. Strike Mbulawa, 2017. "Remittances, Foreign Direct Investment and Growth in SADC: A Panel Co-integration Approach," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 2(1), pages 40-55, March.
    4. Hrushikesh Mallick, 2017. "Determinants of workers’ remittances: An empirical investigation for a panel of eleven developing Asian economies," The World Economy, Wiley Blackwell, vol. 40(12), pages 2875-2900, December.
    5. Hrushikesh Mallick & Mantu Kumar Mahalik, 2016. "Motivating Factors Of Remittances Inflows Into Developing Asian Economies," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(04), pages 1-26, September.

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    More about this item

    Keywords

    Migration; remittances; Southern Africa Development Cooperation;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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