Volatilité des transferts des fonds de migrants sur le développement financier en Afrique Sub-saharienne.

Abstract

The main goal of this study is to define the impact of remittance volatility on sector financial development in Sub-Saharan Africa. To achieve this goal, the present work uses an econometric methodology of estimation by GMMs applied to a sample of annual data from the World Bank and the International Monetary Funds for Sub-Saharan African countries from 2000 to 2019. Three main results are derived from the econometric estimates: the first shows that remittance volatility has a negative effect on financial development; the second shows that remittances would have a negative effect on the general price level; and the third shows that institutional quality decreases the efficiency of the banking sector and financial depths such as domestic credit to the private sector due to a lower demand for credit that mitigates the development of the credit market. Based on these findings, policy implication in SSA countries should have measures in place to monitor the predictability of remittances. This is important because SSA is the third largest recipient of remittances as a percentage of GDP and the percentage of, individuals living in countries other than those of their birth is increasing. SubSaharan African countries should consider implementing policies to attract more productive investment from their diaspora that will also provide opportunities for employment, economic growth and developmemnt of financial sector.