THE IMPACT OF MIGRANT REMITTANCES ON POVERTY REDUCTION IN SELECTED AFRICAN COUNTRIES

📄 Project Abstract

The "brain drain" syndrome created by the movement of skilled workers from developing countries to the developed countries has a long run term of reward for the developing economies. These rewards are visibly seen at the micro level and at the macro level as the counter cyclical effects of migrant remittances on individual/Household incomes to withstand economic shocks, thereby reducing poverty density as targeted by the millennium development goals, as well as its ability to induce investments level. An estimated 175 million people now live outside their countries of birth, making significant contributions to the social and economic development of their host countries, as well as their countries of origin in terms of their propensity to remit (World Bank 2006, ADB 2005, and IOM 2003). According to Keynesian consumption theory; and Ando & Modigliani's permanent income hypothesis, household consumption, which is an indicator of poverty/welfare level, is induced by income and income is i...