Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/244177 
Year of Publication: 
2021
Series/Report no.: 
AGDI Working Paper No. WP/21/002
Publisher: 
African Governance and Development Institute (AGDI), Yaoundé
Abstract: 
This research assesses the relevance of enhancing remittances on value added across economic sectors in sub-Saharan Africa for the period 1980 to 2014 using the Generalised Method of Moments. First, no significant net effects on added value to the agricultural sector are apparent. Second, enhancing remittances engenders a positive net effect on added value to the manufacturing sector. Third, there are negative net effects on added value to the service sector. Given that the unfavourable net incidence of remittances to the service sector is associated with a positive marginal or conditional effect, the analysis is extended by computing thresholds at which remittances induce net positive effects on added value to the service sector. The extended analysis shows that a remittance threshold of 48.5% of GDP is the critical mass needed for further enhancement of remittances to engender positive net effects on value added to the service sector.
Subjects: 
Economic Output
Remitances
Sub-Saharan Africa
JEL: 
E23
F24
F30
O16
O55
Document Type: 
Working Paper

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