The Impact of Remittances on Human Capital in Sub-Saharan Countries
Abstract
This study has examined the impact of remittances on human capital based on 23 Sub-Saharan countries (SSA) from 1981 to 2010. Our primary contribution lies in demonstrating that remittances have a positive impact on the enhancement of human capital in these SSA countries. The results indicate that a 1 percent increase in remittances leads to a 0.26 percent rise in the average years of schooling. To ensure the credibility of our findings, we employ a Generalized Method of Moments (GMM) approach to control for the endogeneity of remittances and human capital in our empirical analysis
Downloads
References
Adams, R. H. (2011). Evaluating the Economic Impact of International Remittances on Developing Countries Using Household Surveys: A Literature Review. Journal of Development Studies, 47(6), 809–828.
Adams, R. H., & Cuecuecha, A. (2013). The Impact of Remittances on Investment and Poverty in Ghana. World Development, 50, 24–40.
Arguillas, M. J. B., & Williams, L. (2010). The impact of parents’ overseas employment on educational outcomes of Filipino children. International Migration Review, 44(2), 300–319.
Bertoli, S., & Cognetti, E. S. (2006). Working Paper Series Remittances and the Dynamics of Human Capital in the Recipient Country Remittances and the Dynamics of Human Capital, (7).
Boucher, S., Stark, O., & Taylor, J. E. (2009). A gain with a drain? Evidence from rural Mexico on the new economics of the brain drain.
Córdova, J. E. L. (2006). Globalization, migration and development: the role of Mexican migrant remittances (Working Paper ITD= Documento de Trabajo ITD; n. 20) (Vol. 20). BID-INTAL.
Edwards, A.C. and Ureta, M. (2003), “International migration, remittances, and schooling: evidence from El Salvador”, Journal of Development Economics, Vol. 72 No. 2, pp. 429-61.
Frisancho-Robles, V. F., & Oropesa, R. S. (2011). International Migration and the Education of Children: Evidence from Lima, Peru. Population Research and Policy Review, 30(4), 591–618.
Gupta, S., Pattillo, C. A., & Wagh, S. (2009). Effect of remittances on poverty and financial development in Sub-Saharan Africa. World Development, 37(1), 104-115.
Gyimah-Brempong, K., & Asiedu, E. (2014). Remittances and investment in education: Evidence from Ghana. The Journal of International Trade & Economic Development, 8199(February), 1–28.
Hanushek, E. A. (2013). Economic growth in developing countries: The role of human capital. Economics of Education Review, 37, 204–212.
Huay, C.S., & Bani, Y. (2018). Remittances, poverty and human capital: Evidence from developing countries. International Journal of Social Economics, 45(8), 1227–1235. https://doi.org/10.1108/IJSE-10-2017-0454
Huay, C.S., Winterton, J., Bani, Y. & Matemilola, B.T. (2019). Do remittances promote human development? Empirical evidence from developing countries, International Journal of Social Economics, 46-10, 1173-1185. https://doi.org/10.1108/IJSE-12-2018-0673.
Hubert Ebeke, C. (2012). Do Remittances Lead to a Public Moral Hazard in Developing Countries? An Empirical Investigation. Journal of Development Studies, 48(November), 1009–1025.
Koska, O. a., Saygin, P. Ö., Ça?atay, S., & Artal-Tur, A. (2013). International migration, remittances, and the human capital formation of Egyptian children. International Review of Economics & Finance, 28, 38–50. http://doi.org/10.1016/j.iref.2013.05.006.
Kugler, M. (2006). Migrant remittance, human capital creation and job creation externalities in Colombia. Coyuntura Social, 34,45–74.
Mansour, W., Chaaban, J., & Litchfield, J. (2011). The impact of migrant remittances on school attendance and education attainment: Evidence from Jordan. International Migration Review, 45, 812–851.
McKenzie, D., & Rapoport, H. (2006). Can Migration Reduce Educational Attainments?? Depressing Evidence from Mexico Depressing Evidence from Mexico. Development, (1), 1–42.
McKenzie, D., & Rapoport, H. (2011). Can migration reduce educational attainment? Evidence from Mexico. Journal of Population Economics, 24(4), 1331–1358.
Ngoma, A. L., & Ismail, N. W. (2013). Do migrant remittances promote human capital formation? Evidence from 89 developing countries. Migration and Development, 2(1), 106–116.
Nguyen, C. V., & Nguyen, H. Q. (2015). Do internal and international remittances matter to the health, education and labor of children and adolescents? The case of Vietnam. Children and Youth Services Review, 58, 28-34.
Orozco, Manuel, (2003). Worker Remittances: An International Comparison. Working Paper commissioned by the Multilateral Investment Fund, Inter-American Development Bank, February.
Ramey, G., & Ramey, V. A. (1995). Cross-country evidence on the link between volatility and growth. American Economic Review, 85 (5), 1138–1151.
Rapoport, H., & Docquier, F. (2005). The economics of migrants’ remittances, Discussion Paper Series IZA DP No. 1531, IZA, Bonn, Germany.
Salas, V. B. (2014). International remittances and human capital formation. World Development, 59(2003), 224–237.
Solow, R. M. (1956). A contribution to the theory of economic growth. Quarterly Journal of Economics, 70, 65-94.
World Bank, 2013. Migration and remittance flows: recent trends and outlook, 2013-2016.
Zhunio, M. C., Vishwasrao, S., & Chiang, E. P. (2012). The influence of remittances on education and health outcomes: a cross country study. Applied Economics, 44(35), 4605–4616.
Copyright (c) 2023 Chong Siew Huay, Yasmin Bani
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
