By: Maryann Uche Ogbuakanne, Ikechukwu Sebastine Asogwa, Charles Nnamdi Anumudu, Ukoha Obasi
Pages: 243–263, Volume: 3, Number: 1
Published by: AEFUNAI Journal of Economics, Finance and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike, 2/1/2026, 2026
ISSN (Electronic): 2536-6742
DOI:
Inequality Effects of Remittance Inflows on Per Capita Income Decomposition in Sub-Saharan Africa
Abstract:
The debate on whether migration-induced remittances are effective for driving income growth, reducing inequality, and promoting long-term economic convergence in SSA still persists despite the benefits highlighted in the literature. This study examines the inequality effects of remittance inflows on the decomposition of per capita income in SSA. The panel data for 46 sub-Saharan African countries spanning 2000-2022 are analyzed using the Panel Vector Autoregression (PVAR) model. The findings reveal that while remittances increase per capita income, they also tend to worsen income inequality in several countries due to the concentration of remittances among higher-income households. The study calls for policies that leverage remittances for rural development and social protection to ensure more equitable growth.
Keywords: Remittance inflows, Income inequality, Gini coefficient, Poverty, Sub-Saharan Africa
How to Cite
Ogbuakanne, M. U., Asogwa, I. S., Anumudu, C. N., & Obasi, U. (2026). Inequality Effects of Remittance Inflows on Per Capita Income Decomposition in Sub-Saharan Africa. AEFUNAI Journal of Economics, Finance and Development Studies (AEFUNAI-JEFDS), Vol. 3(1), 243–263.
Creative Commons Attribution 4.0 International License (CC BY 4.0)
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