Do International Remittances Affect Poverty in Africa?*

Anyanwu, John C.; Erhijakpor, Andrew E. O.

doi:10.1111/j.1467-8268.2009.00228.x

Cited by 226 publications

(218 citation statements)

References 64 publications

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“…Drawing on Piketty's celebrated literature that has substantially debunked the Kuznets' conjectures to which foreign aid policies have been aligned, we suggest that developed countries should oriented developing nations towards industrialisation by focusing more on inequality and less on economic growth. This is broadly consistent with an evolving narrative on inequality in the continent (Elu, 2013;Mthuli et al, 2014;Brada & Bah, 2014;Asongu et al, 2014;Anyanwu, 2011Anyanwu, , 2014 6 .…”

Section: Concluding Implicationssupporting

confidence: 74%

A Brief Clarification to the Questionable Economics of Foreign Aid for Inclusive Human Development

Asongu

2014

SSRN Journal

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The study clarifies the questionable economics of foreign aid for inclusive human development. It investigates the effect of a plethora of foreign aid dynamics on the inequality adjusted human development index. Contemporary and non-contemporary OLS, Fixed-effects and a system GMM technique with forward orthogonal deviations are employed. The empirical evidence is based on a sample of 53 African countries for the period 2005-2012.The following findings are established. First, the impacts of aid dynamics with high degrees of substitution are positive. These include, aid for: social infrastructure, economic infrastructure, the productive sector and the multi-sector. Second, the effect of humanitarian assistance is consistently negative across specifications and models. Third, the effects of programme assistance and action on debts are ambiguous because they become positive with the GMM technique. Justifications for these changes and clarifications with respect to existing literature are provided. Policy implications are discussed in light of Piketty's celebrated literature and the post-2015 development agenda. We also provide some recommendations for a rethinking of theories and models on which development assistance is based.JEL Classification: B20; F35; F50; O10; O55

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Section: Concluding Implicationssupporting

confidence: 74%

A Brief Clarification to the Questionable Economics of Foreign Aid for Inclusive Human Development

Asongu

2014

SSRN Journal

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“…Similar effects have also been reported in cross-country studies by Ravallion and Chen (1997); Adams (2004); Ram (2007); Kanbur (2008); Fosu (2009Fosu ( , 2010; and Anyanwu & Erhijakpor (2010). While testing the claim that in recent times the poor have lost ground, both relatively and absolutely, even when average levels of living have risen, Ravallion and Chen (1997) used household surveys for 67 developing and transitional economies over 1981-1994.…”

Section: Review Of Literaturesupporting

confidence: 53%

“…Typically, investment in this type also contributes to poverty reduction in the short run through increased demand for intermediate inputs, labour, and other factors of production. According to Anyanwu and Erhijakpor (2010), evidence has shown that expenditures for education and health are effective levers of redistribution. More importantly, when public spending on education as well as on health is targeted toward the poor, it can produce a double dividend, reducing inequality and poverty in the short run and increasing the chances for poor children to access formal jobs and thus break free from the intergenerational poverty trap.…”

Section: Variable Description and Data Sourcesmentioning

confidence: 99%

Poverty, Inequality and Rising Growth in Nigeria: Further Empirical Evidence

Kolawole¹,

Omobitan²,

Yaqub³

2015

IJEF

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This study examines the relationship among poverty, inequality and economic growth in Nigeria by employing macroeconomic variables which include GDP growth rate, per capita income, literacy rate, government expenditure on education, and government expenditure on health. Time series data over the period from 1980 to 2012 were fitted into the Ordinary Least Square (OLS) regression equations using various econometric techniques such as Augmented Dickey Fuller (ADF) unit root test, Phillips-Perron unit root test, Johansen co-integration test, and Error Correction Mechanism (ECM) technique. The OLS results reveal that GDP growth rate increases inequality, but reduces poverty in the country. It is thus suggested that, aside boosting the GDP, an increased effective government spending on education and public health facilities, as well as programmes that are meant primarily for the non-privileged like children, women and the poor in general, be provided for poverty and inequality to reduce in the country.

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“…Buch and Kuckulenz (2010) find that remittances have a positive impact on welfare enhancing effect, such as consumption, capital investment, education and health. Employing panel data for 33 African countries over the 1990-2005 period, Anyanwu and Erhijakpor (2010) claim that the inflows of remittances have a positive impact on poverty reduction in 33 African countries. This study also argues that the reduction of poverty depends on poverty measurement procedures.…”

Section: Brief Literature Reviewmentioning

confidence: 99%

Workers’ Remittance Inflow, Financial Development and Economic Growth: A Study on Bangladesh

Masuduzzaman¹

2014

IJEF

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The objective of this article is to analyze the role of remittance on economic growth and to investigate the interaction of remittance with the financed development of Bangladesh using annual data, relatively liberalized regime spanning from 1981 to 2013. This study employed the mostly used Johansen co-integration test along with vector error correction model to reveal both the short-run and the long-run association between remittance-growth and remittance-financed development. Granger Causality tests are also used to explore the possible endogenous relationship between remittance-growth and remittance-financed development. This study finds a long run positive relationship between inflow of remittance and gross domestic products (GDP) indicating that remittance will be more likely to contribute to longer-term growth in Bangladesh. It is also revealed that remittances have a significant positive effect on financial development. Therefore, this study posits that the inflow of workers' remittance matters for countries like Bangladesh, which has a relatively growing economy and a developing financial sector. The paper also discusses a number of policy issues arising from the results of the analysis in relation to remittance in association with managing migration and remittance, skilled development of the migrants, Dutch disease effect, returnee expatriates and gender issues. While examining the channels the direct impact of remittance on poverty reduction (household welfare) remains an area of research for the future. The outcome of this study will be a clear understanding of the key factors affecting workers' remittance, growth and financial development, which will be relevant to policy makers to have detailed appraisals of remittance polices and their expected economic impact on Bangladesh and other remittance recipients country as well.

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Do International Remittances Affect Poverty in Africa?*

Cited by 226 publications

References 64 publications

A Brief Clarification to the Questionable Economics of Foreign Aid for Inclusive Human Development

A Brief Clarification to the Questionable Economics of Foreign Aid for Inclusive Human Development

Poverty, Inequality and Rising Growth in Nigeria: Further Empirical Evidence

Workers’ Remittance Inflow, Financial Development and Economic Growth: A Study on Bangladesh

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