The dynamics of remittances impact: a mixed-method approach to understand Ghana's situation and the way forward
Asafo Agyei, Stephen
Many scholarly articles on remittance have focused on its positive or negative impact on
the macro- or microeconomy. Given that trend, remittance is usually analysed without its sociological
elements embedded within the migration process. Therefore, this paper employs a bird's eye view to
advance our understanding of the dynamics of remittance within the Ghanaian migration framework.
By this, the paper uses a mixed-method approach to shed light on the Ghana case. First, through
multiple linear regression, the paper shows that remittance inflow to Ghana is positively related
to GDP per capita. Specifically, the evidence indicates that a 1% increase in remittance leads to
an approximately 4% increase in the GDP per capita. Second, with the aid of household survey
data from Ghana Statistical Service and Ghana's poverty dimension, the paper shows that while
the empirical finding suggests an improvement of the populace's standard of living, the evidence
on the grounds, however, conflicts with such findings. This is because remittance is primarily a
private resource and is likely to reach only a few well-off homes in Ghana; hence, it does not consider
an effective redistributive dimension. Third, to further elucidate why remittance reaches these
few groups, the paper analyses within the Marxist political framework how legal migration to the
developed countries has always been an option only for the well-off and middle-class Ghanaians
who could afford the cost. With this clear establishment of the remittance dynamics in Ghana, the
study proposes plausible suggestions to enhance the redistributive effect of remittance in Ghana.
In particular, the study recommends a state-led online app for migrants to send money to Ghana.
Notably, the state should champion this agenda because subsidising the transaction fees would
make it relatively cheaper for migrants. While this would encourage migrants to use the official
means, which undoubtedly is significant for the macroeconomy, the app's returns could be used in
addressing the country's social inequality gap at the micro-level.
Migration; Remittances; Political economy analysis; Macroeconomic impact; Social inequality
UIBD/GEO/00295/2020; UIDP/GEO/00295/2020; https://www.mdpi.com/2076-0760/10/11/410
Type of publication|
Asafo Agyei, S. (2021). The Dynamics of remittances impact: a mixed-method approach to understand Ghana's situation and the way forward. Social Sciences, 10(11), 410. http://dx.doi.org/10.3390/socsci10110410; 2076-0760; 10.3390/socsci10110410
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Added to C-A: 2022-01-10;14:13:53|
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