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Do remittances increase the size of the informal economy in Sub-saharan African countries?

Author

Listed:
  • Henri Njangang

    (LAREFA, University of Dschang)

  • Edmond Noubissi

    (LAREFA, University of Dschang)

  • Hilaire Nkengfack

    (LAREFA, University of Dschang)

Abstract

This paper investigates the relationship between remittances and the size of the informal economy for 30 Sub-Saharan African (SSA) countries over the period 1991-2015. Based on Ordinary Least Squared (OLS) and System Generalized Method of Moments (GMM), empirical findings show that remittances increase the size of the informal economy.

Suggested Citation

  • Henri Njangang & Edmond Noubissi & Hilaire Nkengfack, 2018. "Do remittances increase the size of the informal economy in Sub-saharan African countries?," Economics Bulletin, AccessEcon, vol. 38(4), pages 1997-2007.
    • Handle: RePEc:ebl:ecbull:eb-18-00673
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    References listed on IDEAS

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    Cited by:

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    2. Ridwan, Lanre Ibrahim & Ajide, Kazeem Bello & Cifuentes-Faura, Javier & Al-Faryan, Mamdouh Abdulaziz Saleh, 2024. "Shadow economy implications of financial development in Africa: Do income groups also matter?," Emerging Markets Review, Elsevier, vol. 59(C).
    3. Gaston Brice Nkoumou Ngoa, 2022. "Do remittances affect labor market outcomes in Sub-Saharan Africa," Economics Bulletin, AccessEcon, vol. 42(2), pages 303-316.
    4. Schneider, Friedrich & Khan, Shabeer & Baharom Abdul Hamid & Khan, Abidullah, 2019. "Does the tax undermine the effect of remittances on shadow economy?," Economics Discussion Papers 2019-67, Kiel Institute for the World Economy (IfW Kiel).
    5. Hilaire Nkengfack & Hervé Kaffo Fotio & Armand Totouom, 2021. "How Does the Shadow Economy Affect Environmental Quality in Sub-Saharan Africa? Evidence from Heterogeneous Panel Estimations," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(4), pages 1635-1651, December.
    6. Djeunankan, Ronald & Njangang, Henri & Tadadjeu, Sosson & Kamguia, Brice, 2023. "Remittances and energy poverty: Fresh evidence from developing countries," Utilities Policy, Elsevier, vol. 81(C).
    7. Henri Njangang & Luc Ndeffo Nembot & Joseph Pasky Ngameni, 2020. "Does financial development reduce the size of the informal economy in sub‐Saharan African countries?," African Development Review, African Development Bank, vol. 32(3), pages 375-391, September.
    8. Njangang, Henri, 2018. "Does the size of the informal economy impede the impact of remittances on economic growth? Evidence from Sub-Saharan African countries," MPRA Paper 90187, University Library of Munich, Germany.
    9. Melingui Bate Adalbert Abraham Ghislain, 2022. "Does the diffusion of information and communication technologies affect the shadow economy in Africa?," African Development Review, African Development Bank, vol. 34(4), pages 513-526, December.

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    More about this item

    Keywords

    remittances; the informal economy; GMM; SSA;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

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