Impact of Migrant Remittance on Socio-Economic development of Ghana

Abstract

International migration as a force of globalization is on the rise and has gained international discussion on many developmental platforms to analyze the real effects of migration on especially the sending country. Remittance received has also been described as a tool that can harness the development of many developing countries through reduction of poverty.

This study therefore analyzed the impact of remittance on the socio-economic development of Ghana. The study made use of a time series data over the period 1992-2012 and employed a multiple regression analysis for both economic growth and poverty reduction in Ghana. Results from the analysis suggests that, remittance had a positive impact on economic growth with a positive coefficient of correlation and statistically significant. However, the impact on poverty reduction in Ghana was statistically insignificant but had a negative coefficient of correlation which proves an indirect effect on poverty reduction.

Keywords: Remittance, Poverty, Economy, Growth, Development, Migration, Ghana.