Dr. Iseghohi Judith Omon
Volume 4 Issue 1 | Mar 2021
DOI: 10.31841/KJEMS.2021.10
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Abstract
In this study, we empirically investigated the determinants of migrant remittances for the five countries that make up West Africa Monetary Zones (WAMZ). Panel secondary data from World Bank and International Monetary Fund data bases for the period 1990-2016 were used for the analysis. Both descriptive statistics and Pooled Mean Group (PMG) estimator was used for the analysis. The result revealed that remittance inflow into WAMZ was influenced by unemployment rate, the level of financial sector development, exchange rate of domestic currency, real per capita income of recipient country, and the level of development of source country. However, lower migrant remittance was associated with higher per capita income and depreciation of exchange rate in recipient country. The study recommends that the government of countries in the zone should make efforts to develop their financial systems and ensure that exchange rate is market friendly to encourage migrants to remit more money home. To encourage remittance inflows into WAMZ the study recommends that government of WAMZ should strengthen their financial sectors through implementation of appropriate regulatory measures.
Keywords: Determinants, Remittances, West Africa Monetary Zone