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Remittances and Economic Development in Africa: A Review of Empirical Evidence

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Foreign Capital Flows and Economic Development in Africa

Abstract

This chapter presents a review of the literature on remittances and economic development with a focus on Africa. The chapter describes the importance of remittances relative to ODA and FDI in the continent, outlines the channels through which remittances are expected to influence economic development, and then reviews the related empirical evidence largely in the context of Africa. The review reveals that the evidence is thin and mixed, depending on the dimension of economic development examined. Overall, the evidence seems to suggest that remittances help alleviate poverty and improve living conditions but may worsen income inequality, with mixed effects reported with respect to economic growth and some of its determinants.

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Authors and Affiliations

  1. Spelman College, Atlanta, GA, USA

    Kasahun Woldemariam

  2. Clark Atlanta University, Atlanta, GA, USA

    Zelealem Yiheyis

Authors
  1. Kasahun Woldemariam
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  2. Zelealem Yiheyis
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Editors and Affiliations

  1. Pennsylvania State University, DuBois, PA, USA

    Evelyn Wamboye

  2. Birmingham-Southern College, Birmingham, Alabama, USA

    Esubalew Alehegn Tiruneh

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Woldemariam, K., Yiheyis, Z. (2017). Remittances and Economic Development in Africa: A Review of Empirical Evidence. In: Wamboye, E., Tiruneh, E. (eds) Foreign Capital Flows and Economic Development in Africa. Palgrave Macmillan, New York. https://doi.org/10.1057/978-1-137-53496-5_18

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  • DOI: https://doi.org/10.1057/978-1-137-53496-5_18

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  • Publisher Name: Palgrave Macmillan, New York

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