Abstract

The inflow of migrant remittances to developing economies in the recent past has been one of the most topical issues discussed in growth literature due to the increasing volume, stable nature, and capacity to enhance growth. This study examines the effect of migrant remittances and financial market development, on per capita real growth in sub-Saharan Africa (SSA). Data from twenty-seven African countries between the period 2000 and 2020 was employed for this study. The pool mean group (PMG) was deployed in analyzing the data. The study outcome revealed that migrant remittances positively influence and facilitate growth in the SSA region. The study also affirmed that equity market development contributes positively to growth in the SSA region. Furthermore, the study also established that banking sector development seems not to affect growth positively in the SSA. In addition, the study also recommends some policies for the region to implement.

Key words: Migrant remittances, financial market development, pool mean group, sub-Saharan Africa.