Migrant Remittances and Conflicts in Sub-Saharan African Countries: Effects and Transmission Channels

Abstract

This article assesses the effect of migrant remittances (MR) on conflicts in Sub-Saharan Africa. From a sample of 45 countries, we specify and estimate a panel data model using the two-way fixed effects method (TWFE) whose robustness is proven by the system generalized method of moments (S-GMM) and the lagged explanatory variables method (LEVM) over the period from 2000 to 2020. Two main results emerge. Firstly, MR significantly increases conflicts in SSA. Secondly, the effects of MR on conflicts are mediated by corruption, education, diffusion of information and communication technologies (ICT), and financial development. The results remained robust and sensitive to the exclusion of countries in situations of intense conflict, serious conflict, intense and serious conflict, and cultural variables. We suggest the consolidation of legislation on MR and setting up a traceability system to control their volume and channel them as far as possible towards productive investments to the detriment of conflicts.