African migrants’ transfers, macroeconomic and welfare effects

Abstract

This paper analyses the dynamic of migrants’ transfers in Africa and draws macroeconomic as well as welfare effects. From a sample of 47 African countries over the period 1980-2013 and based on bivariate analysis, we find that remittances foster GDP per capita growth, financial development, private investment, household consumption in African countries. In the same time, there can have negative macroeconomic impact by increasing real effective exchange rate and corruption. As soon as welfare effects are concerned, our results suggest that remittances improve enrollment rate at secondary school and reduce inequality and poverty. The results have important policy implications for recipient countries.