International remittances and well-being in Sub-saharan Africa

Michael A. Ajayi¹, Mukaila A. Ijaiya², Gafar T. Ijaiya³, Raji A. Bello³, Mufthau A. Ijaiya¹ and Sidikat L. Adeyemi⁴

¹Department of Accounting and Finance, University of Ilorin, Nigeria.

²Department of General Studies, Federal University of Technology, Minna, Nigeria.

³Department of Economics, University of Ilorin, Nigeria.

⁴Department of Business Administration, University of Ilorin, Ilorin, Nigeria.

*Corresponding author. E-mail: gtijaiya@yahoo.com, gtijaiya@ hotmail.com

Accepted 25 June, 2009

   Abstract

This paper examines the impact of international remittances on well-being in sub-Saharan Africa, using a set of cross-country data drawn from 38 countries and a multiple regression analysis. The result obtained from the analysis indicates that international remittances have to some extent contributed to the improvement of well-being in sub-Saharan Africa. However, for international remittances to continue to be relevant to the well-being of the people of sub-Saharan Africa, measures such as sound macroeconomic policy, flexible financial sector infrastructure and low transaction cost of fund transfers, conducive investment climate with stable political environment, adequate checks on the incidence of money laundering, greater transparency in the transfer of fund between the sender, the disbursing agent and the receiver, adequate protection of the customers, financial security and risk management practices were suggested.

Key words: Remittances, well-being, Africa.