ABSTRACT
Remittance funds are fast outpacing external finance especially in developing countries, thus contributing to closing fiscal deficits for recipient economies and potential improvements in welfare. But the cost of remittances has remained relatively high, which threatens the potential benefits. In support of the United Nations Sustainable Development Goal 10 to reduce cross-border remittances fees, we examine the effect of the cost of remitting on welfare in Sub-Saharan Africa which has some of the most expensive remittance corridors. Panel fixed effects estimates using Remittance Prices Worldwide data and cross-country data from 13 SSA corridors show that household per capita consumption, life expectancy, and expenditure towards education are compromised by an upward movement in remittance fees.
