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GTAP Resource #6376

"Impact of the Covid-19 on remittances and Economic growth in Africa: Theoretical framework and empirical evidences"
by Aidi, Wafa and Stephen Karingi

Covid-19 continues to spread despite lockdowns, masks, and social distancing driven by renewed worldwide upticks and the coronavirus more contagious variant detected in several new countries . The pandemic and its related economic crisis have involved declines in remittances inflows. Based on the latest estimates published in the World Bank’s Migration and Development Brief, the migrant remittances in 2021 are projected to decline by 14 percent compared to the pre-coronavirus levels in 2019.
In Africa, the Covid-19 has severely impacted remittance inflows. Based on World Bank data on remittances and estimates, UNECA/ONE (2020) evaluated that remittances inflow will record its steepest reduction in recent history and could decline by 21 per cent in 2020, implying $ 18 billion less to the people who rely on this economic lifeline. The decline is mainly due to the migrants' situation in hosting economies and the disruption in the activity of remittance service providers.
The remittances constitute an essential lifeline for Africa, and this could be demonstrated by the following figures (i) One out of five persons sends or receives remittances , (ii) Remittance account for 10 percent of GDP in 6 African countries and (iii) African migrants sent more than $78 billion to their relatives in 2020.
The paper aims to investigate the growth and poverty implications of the remittances decline in Africa. This approach can help evaluating the economic and social consequences of national and global fall in remittances especially the impact on growth and poverty. It will help understanding the magnitude of impact that could have remittance on growth and poverty in Africa. It will focus on specific SDGS.

Resource Details (Export Citation) GTAP Keywords
Category: 2021 Conference Paper
Status: Not published
By/In: Presented during the 24th Annual Conference on Global Economic Analysis (Virtual Conference)
Date: 2020
Created: Aidi, W. (4/15/2021)
Updated: Aidi, W. (4/15/2021)
Visits: 639
- Dynamic modeling
- Economic development
- Africa (Central)
- Africa (East)
- Africa (North)
- Africa (Southern)
- Africa (West)

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Preliminary Draft: NOT FOR PUBLICATION

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Posted by: Aidi, Wafa   4/15/2021 4:42:00 PM
Preliminary Draft: NOT FOR PUBLICATION