Remittances, Investments Of Rural Households And Rural-Urban Migration: Evidence From Six Central Africa Countries

Frank Audrey Tchokonthe, Institut de Formation et de Recherche Demographiques
Honore Mimche, IFORD

As many developing countries, Central Africa countries face a growing urbanization, with many consequences in rural and urban spaces. Besides that we observe a constant raise in remittances receipts by households – mostly rural. Regarding these parallel phenomenon our study aim to shed the light on the effect of remittances use on rural-urban migration. Making use of structural equation modelling (SEM) on six central Africa countries for 13 years (2000 – 2012), to take into account the various pathways by which remittances can act, we found that remittances contribute, through agriculture development, and involvement in non-farm activities to rural-urban migration. However, this virtuous effect is mitigated by the effect of remittances on financing rural-urban movement. Pursuing their promotion of agriculture involvement, central African governments can also create an appropriate environment for the development of services in rural areas, such as services that put in relation farmers and agro industries.