Re-examining the Impact of Remittances on Human Development: Evidence from Sub-Saharan Africa

Sub-Saharan Africa (SSA) continues to lose its skilled workers through migration in a form of brain drain. In return remittances from these migrant workers to the region have been surging and now constitute a major external source of finance. Do these increasing inflow of remittances contribute to human development? This paper examines the impact of remittances on human development in 30 SSA countries using the system Generalized Method of Moments (sGMM) approach for the period 2004-2018. The empirical results show that remittance inflows impact positively on human development in SSA. Based on the empirical results, it is imperative for SSA countries to have a clear-cut policy framework and strategies on migration to attract, increase and harness the full benefit of remittances.