Do remittances increase the size of the informal economy in Sub-saharan African countries?

Abstract

This paper investigates the relationship between remittances and the size of the informal economy for 30 Sub-Saharan African (SSA) countries over the period 1991-2015. Based on Ordinary Least Squared (OLS) and System Generalized Method of Moments (GMM), empirical findings show that remittances increase the size of the informal economy.