Remittances Inflows and Development in West Africa: A Study of Selected Countries

Abstract

This study analyzes remittances and development in West Africa using five countries in West Africa as case studies. The data used were personal remittances received, financial openness and exchange rate as explanatory variables while human development index was the dependent variable. The data were sourced from the World Bank and the United Nations 2022 publications. The data were panel data and as a result, the study utilized the panel regression model as the main analytical tool. The results showed that remittances into West African economies are spurred by increased financial openness and exchange rate. This aligns with the neoclassical migration theory and the developmental optimistic school of thought. The study concluded that remittances to West African countries have greatly influenced economic development in the sub-region and recommended that the increased financial openness should be a strategy for governments in the West African sub-region to appeal to their nationals abroad to utilize formal remittance channels as this would aid the developmental efforts of the government.(C12,F24,R11)

Received: 7 September 2024 / Accepted: 10 November 2024 / Published: 20 November 2024