Effect of Migrant Remittances on Well-Being in Sub-Saharan Africa: Does Socio-Economic Characteristics Matter

Abstract

This article analyzes the effect of migrant remittances on well-being in sub-Saharan Africa. To do so, a panel of 41 countries was studied over the period from 2007 to 2023. Methodologically, two econometric approaches were used: the generalized method of moments (GMM) and moment quantile estimation (MMQR). The results show that migrant remittances contribute significantly to improving well-being in the region. However, their effect is more pronounced in countries with low or intermediate levels of well-being compared to those where well-being is already high. This asymmetry suggests that remittances play a more crucial role in fragile socioeconomic contexts.