Skip to main content
SpringerLink
Log in

Africa’s Money in Africa: Human and Physical Capital Dimensions

  • Chapter
  • First Online:
Global Diasporas and Development

Abstract

Some studies contest that remittance induces ‘careless spending’; others posit that it can promote economic development particularly through human and physical capital. This study observes that not much empirical work that examines the impact of remittance on human and physical capital in Africa has been carried out. The main objective of the study was achieved by using a sample of African countries. It was found that remittance impacts both human and physical capital positively and significantly, principally when it is complimented with sound institutions. In effect, institutions help to improve the linkage between remittance human and physical capital.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Acemoglu, D., Johnson, S., & Robinson, J. (2001). The colonial origin of comparative development: An empirical investigation. American Economic Review, 91(5), 1369–1401.

    Article  Google Scholar 

  • Adams, R. (2005). Remittances, household expenditure and investment in Guatemala (World Bank policy research working paper) (pp. 1–36).

    Google Scholar 

  • Adams, R., & Ceucuecha, A. (2010). Remittances, household expenditure and investment in Guatemala. World Development, 20(10), 1–16.

    Google Scholar 

  • Adams, R., Cuecuecha, A., & Page, J. (2008). Remittances, consumption and investment in Ghana (The World Bank development economics department policy research working paper, no.4515).

    Google Scholar 

  • Akerlof, G. (1970). The market for lemon: Qualitative uncertainty and the market mechanism. Quarterly Journal of Economics, 84, 488–500.

    Article  Google Scholar 

  • Arieff, A., Weiss, M., & Jones, V. (2010). The global financial crisis: Impact on sub-Saharan Africa and global policy responses, Congressional Research Service. Available at http://www.fas.org/sgp/crs/row/R40778.pdf

  • Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application for employment equations. Review of Economic Studies, 58(2), 277–297.

    Article  Google Scholar 

  • Bjuggren, P., Dzansi, J., & Shukur, G. (2010). Remittances and investment. (Centre for Excellence for Science and Innovation Studies (CESIS) working paper, no. 216).

    Google Scholar 

  • Bourdet, Y., & Falcks, H. (2006). Emigrants’ remittances and Dutch disease in Cape Verde. International Economic Journal, 20(3), 267–284.

    Article  Google Scholar 

  • Carling, J. (2005). Migrant remittances and development cooperation. Oslo: International Peace Research Institute (PRIO).

    Google Scholar 

  • Fosu, A. K. (2003). Political instability and export performance in sub-Saharan Africa. Journal of Development Studies, 39(4), 68–82.

    Article  Google Scholar 

  • Fosu, A. K. (2011). Terms of trade and growth of resource economies; A tale of two countries (UNU-WIDER working paper, no.2011/28).

    Google Scholar 

  • Ghosh, B. (2006). Migrants’ remittances and development: Myths, rhetoric and realities. Geneva/The Hague: International Organization on Migration.

    Google Scholar 

  • Gupta, S., Pattillo, C., & Wagh, S. (2007). Making remittance work for Africa. Finance and Development, 44(2), 1–8.

    Google Scholar 

  • International Fund for Agricultural Development-IFAD (2012). Africa. http://www.ifad.org/remittances/maps/africa.htm. Accessed 22 Apr 2012.

  • International Monetary Fund's-IMF (2011). Balance of payment statistics database. Retrieved from http://elibrary-data.imf.org/FindDataReports.aspx?d=33061&e=170784

  • International Organization for Migration. (2011). A study on remittances and investment opportunities for Egyptian migrants. Cairo: International Organization for Migration.

    Google Scholar 

  • Kaufman, D., Kraay, A., & Mastruzzi, M. (2009). Governance matters VII: Aggregate and individual governance indicators 1996–2008 (World Bank policy research working paper, no. 4978).

    Google Scholar 

  • Levitt, P. and Nyberg-Sorensen, N. (2004). The transnational turn in migration. Global migration perspectives, no. 6, October, Geneva: Global Commission on International Migration (pp. 1–14).

    Google Scholar 

  • Leyaro, V., & Morrissey, O. (2010). Trade and growth: Is Sub-Saharan Africa different (CREDIT research paper, no.10/04).

    Google Scholar 

  • McCormick, B., & Wahba, J. (2001). Overseas work experience, savings and entrepreneurship amongst return migrants to LDCs. Scottish Journal of Political Economy, 48(2), 164–178.

    Article  Google Scholar 

  • Mehlun, H., & Moene, K. (2006). Institutions and the resource curse. Economic Journal, 116, 1–20.

    Article  Google Scholar 

  • North, D. C. (1991). Institutions. The Journal of Economic Perspectives, 5(1), 97–112.

    Article  Google Scholar 

  • Olayiwola, K. W., & Osabuohien, E. S. (2010). Evaluation of the role of Fiscal policy in promoting savings, investment and capital formation in Nigeria. The Journal of Banking and Finance, 10(1), 26–45.

    Google Scholar 

  • Osabuohien, E., & Efobi, U. (2011). Trade outcomes in Africa’s regional economic communities and institutional quality: Some policy prescriptions. Petroleum-Gas University of Ploiesti Economic Sciences Series, LXIII(4), 19–32.

    Google Scholar 

  • Osabuohien, E. S., & Efobi, U. R. (2013). Africa’s money in Africa. South African Journal of Economics, 81(2), 292–306.

    Article  Google Scholar 

  • Ostrom, E. (2005). Understanding institutional diversity. Princeton: Princeton University Press.

    Google Scholar 

  • Ratha, D., Mohapatra, S., Ozden, C., Plaza, S., Shaw, W., & Shimeles, A. (2011). Leveraging migration for Africa; remittances; skills and investments. Washington, DC: World Bank.

    Google Scholar 

  • Rodrik, D. (1999). The new global economy and developing countries: Making openness work. London: Overseas Development Institute.

    Google Scholar 

  • Tasneem, S., & Chowdhury, R. A. (2003). Migrant worker remittances and micro-finance in Bangladesh. Dhaka: Refugee and Migratory Movements Research Unit/International Labour Office.

    Google Scholar 

  • United Nations Development Programme – UNDP. (1990–2013). Human development reports. New York: UNDP.

    Google Scholar 

  • Williamson, O. E. (2000). The new institutional economics: Taking stock, looking ahead. Journal of Economic Literature, 38(3), 595–613.

    Article  Google Scholar 

  • World Bank. (2011). World development indicators. Washington, DC: World Bank.

    Google Scholar 

Download references

Acknowledgments

Conference grants from Royal Economic Society, UK, and Covenant University, Nigeria, are appreciated. The authors also express gratitude to the organisers of the International Conference on ‘Diaspora and Development: Prospects and Implications for Nation-States’ for covering in-country expenses as well as valuable comments from participants. The helpful assistance from Beecroft Ibukun of Covenant University in the revision process is appreciated. Comments from anonymous reviewers are acknowledged.

Author information

Authors and Affiliations

  1. Department of Economics & Development Studies, Covenant University, Ota, Ogun State, Lagos, Nigeria

    Stephen Evans Osabuohien Ph.D.

  2. School of Business, Covenant University, Ota, Ogun State, Lagos, Nigeria

    Rapuluchukwu Uchenna Efobi

Authors
  1. Stephen Evans Osabuohien Ph.D.
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Rapuluchukwu Uchenna Efobi
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Stephen Evans Osabuohien Ph.D. .

Editor information

Editors and Affiliations

  1. Indira Gandhi National Open University, New Delhi, India

    Sadananda Sahoo

  2. Indira Gandhi National Open University, New Delhi, India

    B.K. Pattanaik

Rights and permissions

Reprints and permissions

Copyright information

© 2014 Springer India

About this chapter

Cite this chapter

Osabuohien, S.E., Efobi, R.U. (2014). Africa’s Money in Africa: Human and Physical Capital Dimensions. In: Sahoo, S., Pattanaik, B. (eds) Global Diasporas and Development. Springer, New Delhi. https://doi.org/10.1007/978-81-322-1047-4_5

Download citation

Publish with us

Policies and ethics

Search

Navigation