The Effects of Remittances on Output per Worker in Sub‐Saharan Africa: A Production Function Approach |
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Authors: | John Ssozi Simplice A Asongu |
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Institution: | 1. Department of Economics, Hankamer School of Business, Baylor University, Waco, TX, USA;2. Research Department of the African Governance and Development Institute |
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Abstract: | This paper uses a production function to examine the channels through which remittances affect output per worker in 31 Sub‐Saharan African countries from 1980 to 2010. Lagged remittances increase physical capital per worker, average years of schooling and total factor productivity, but the effectiveness of remittances varies with the income level of the recipient nation. Although remittances have increased both physical capital and total factor productivity among the upper middle income nations, among the lower middle income, they have increased only the physical capital. Meanwhile a reduction in institutional risk has encouraged investment and efficiency, but its relationship to the effectiveness of remittances has been inconclusive. |
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Keywords: | F22 F24 F35 F43 F63 O15 O16 O43 O55 Remittances output per worker production function Sub‐Saharan Africa |
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