Economic Welfare of Remittances within Regional Trading Blocs in African Countries

(Pages 546-554)

Fatma Mabrouk1.2.3,*
1Department of Economics, College of Business and Administration, Princess Nourah bint Abdulrahman University, P.O. Box 84428, Riyadh 11671, Saudi Arabia.
2Center for Economic and Social Studies and Research. 1003 Tunis- Tunisia.
3Bordeaux School of Economics. 33600 Pessac, France.


This paper examines the role of remittances induced through regional integration on economic welfare in Africa. The study uses GMM estimates based on one-step dynamic panel to correct for simultaneity bias and data for the period 2007–2018 and finds that remittances have a negative significant impact on GDP per capita (as a measure of economic welfare) in Africa. The impact of formal remittances on welfare is, however, higher in more developed financial markets. The results further show that as the geographical size of the regional bloc decreases, the effects of formal remittances decrease. The result implies that it is easier and cheaper to transfer remittances informally in smaller regional blocs, which may raise the problem of the high cost of sending remittances formally within these regions.


Remittances, Regional Integration, Economic Welfare.

JEL Classification:

F14, F15, F24.

How to Cite:

Fatma Mabrouk. Economic Welfare of Remittances within Regional Trading Blocs in African Countries. [ref]: vol.20.2022. available at:

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