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Economic & Financial Governance, Human Capital Development, Regional Integration
For many developing countries including in Sub-Saharan Africa, international remittance flows represent a large and stable source of external finance. According to a recent World Bank report (Mohapatra and Ratha, 2011, Remittance Market in Africa) remittances sent by 31 million international African migrants reached nearly $40 billion in 2010, equivalent to 2.6 percent of Africa’s gross domestic product (GDP). Recent empirical studies using SubSaharan African data have demonstrated the positive contribution of remittances to poverty reduction and financial development (Gupta et al., 2009). Empirical evidences also point out the key role played by remittance, as an insurance mechanism against exogenous shocks (Gubert, 2002, Yang and Choi, 2007; Yang, 2008; Combes and Ebeke, 2011) and their induced effect on welfare.