- Title
- Remittances, financial development and poverty reduction in Sub-Saharan Africa: Implications for post-COVID-19 macroeconomic policies
- Creator
- Acheampong, Alex O.; Appiah-Otoo, Isaac; Dzator, Janet; Agyemang, Kwabena Koforobour
- Relation
- Journal of Policy Modeling Vol. 43, Issue 6, p. 1365-1387
- Publisher Link
- http://dx.doi.org/10.1016/j.jpolmod.2021.09.005
- Publisher
- Elsevier
- Resource Type
- journal article
- Date
- 2021
- Description
- To design and implement effective post-COVID-19 macroeconomics policies to tackle poverty in SSA, policymakers need to understand the factors shaping poverty in the region. This paper investigates the effect of international remittances and financial development on poverty alleviation in 44 sub-Saharan African (SSA) countries from 2010 to 2019. The instrumental variable generalised method of moment technique results indicated that while remittances increase poverty, financial development contributes significantly to poverty reduction. The results consistently revealed that remittances increase both male and female poverty rates, while financial development significantly reduces male and female poverty rates. Other factors such as economic growth, foreign direct investment, and trade openness contributed significantly to reducing poverty. In contrast, government expenditure and foreign aid were found to increase poverty rate in SSA. These results are robust to the Lewbel two-stage least squares estimator. The practical implications of these findings for post-COVID-19 macroeconomic policies in SSA are discussed.
- Subject
- financial development; remittances; poverty; Sub-Saharan Africa; SDG 1; SDG 8; SDG 10; SDG 17; Sustainable Development Goals
- Identifier
- http://hdl.handle.net/1959.13/1476402
- Identifier
- uon:49814
- Identifier
- ISSN:0161-8938
- Language
- eng
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Collections
Goal 10: Reduced Inequalities
Goal 8: Decent Work and Economic Growth
Goal 1: No Poverty
Goal 17: Partnerships for the Goals
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