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Peut-On Compter Sur Les Transferts De Fonds Des Migrants Pour Favoriser La Croissance Economique En Afrique Subsaharienne?

Author

Listed:
  • Olivier Nguemjom Bouya

    (UC - University of California)

  • Ngah Ntiga Louis Henri

    (UC - University of California)

Abstract

This paper investigates the effect of remittances on economic growth in Sub-Saharan Africa (SSA). Using a panel of 48 SSA countries over the period 1990-2020, and using the GMM System method in dynamic panels and then the vector autoregressive panel model, the results show that remittances do not have a significant effect on economic growth in the African countries of origin. Indeed, MFTs are mainly used for domestic consumption and investment and the positive effects generated could simply offset the negative effects of brain drain. We recommend that policymakers in SSA countries introduce a measured direct tax on MFTs in their tax structure, broaden their tax base to all consumer goods, create incentives for formal remittances via digital channels, and pursue policies aimed at better inclusion of the diaspora in the realization of major development projects in SSA with an orientation of MFTs towards productive investments.

Suggested Citation

  • Olivier Nguemjom Bouya & Ngah Ntiga Louis Henri, 2023. "Peut-On Compter Sur Les Transferts De Fonds Des Migrants Pour Favoriser La Croissance Economique En Afrique Subsaharienne?," Working Papers hal-04307148, HAL.
    • Handle: RePEc:hal:wpaper:hal-04307148
    Note: View the original document on HAL open archive server: https://hal.science/hal-04307148
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