Towards inclusive growth in Africa: Remittances, and financial development interactive effects and thresholds

IF 2.9 3区经济学 Q2 BUSINESS, FINANCE

Journal of Multinational Financial Management Pub Date : 2023-06-01 DOI:10.1016/j.mulfin.2023.100798

Isaac K. Ofori , Emmanuel Y. Gbolonyo , Marcel A. Toyo Dossou , Richard K. Nkrumah , Emmanuel Nkansah

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引用次数: 3

Abstract

The study employs macro data for 42 African countries to examine the interactive and threshold effects of financial development in the remittances-inclusive growth relationship. First, evidence based on the system GMM estimator shows that remittances are not statistically significant in promoting inclusive growth in Africa. Notably, across the economic growth and income inequality dimensions of inclusive growth, we find that although remittances are ineffective in boosting the former, they deepen the latter. Second, we find that Africa’s underdeveloped financial sector dampens the marginal positive effect of remittances on inclusive growth. Third, our threshold analysis indicates that for financial development to interact with complementary policies to foster inclusive growth in Africa, a minimum threshold of 14.5% is required. We conclude by informing policy on the level of investments needed for financial development to promote fairer income growth and distribution in Africa.

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实现非洲包容性增长:汇款和金融发展的相互影响和门槛

本研究采用42个非洲国家的宏观数据，考察了金融发展在汇款-包容性增长关系中的互动效应和门槛效应。首先，基于系统GMM估计器的证据表明，汇款在促进非洲包容性增长方面没有统计学意义。值得注意的是，在包容性增长的经济增长和收入不平等维度上，我们发现尽管汇款对促进前者无效，但却加深了后者。第二，我们发现非洲金融部门的不发达抑制了汇款对包容性增长的边际积极作用。第三，我们的阈值分析表明，要使金融发展与互补政策相互作用以促进非洲的包容性增长，最低阈值需要达到14.5%。最后，我们就促进非洲更公平的收入增长和分配所需的金融发展投资水平提供政策信息。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Multinational Financial Management BUSINESS, FINANCE-

CiteScore

7.30

自引率

4.80%

发文量

审稿时长

30 days

期刊介绍： International trade, financing and investments have grown at an extremely rapid pace in recent years, and the operations of corporations have become increasingly multinationalized. Corporate executives buying and selling goods and services, and making financing and investment decisions across national boundaries, have developed policies and procedures for managing cash flows denominated in foreign currencies. These policies and procedures, and the related managerial actions of executives, change as new relevant information becomes available. The purpose of the Journal of Multinational Financial Management is to publish rigorous, original articles dealing with the management of the multinational enterprise. Theoretical, conceptual, and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • Foreign exchange risk management • International capital budgeting • Forecasting exchange rates • Foreign direct investment • Hedging strategies • Cost of capital • Managing transaction exposure • Political risk assessment • International working capital management • International financial planning • International tax management • International diversification • Transfer pricing strategies • International liability management • International mergers.