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Consumption-Savings Trade-Off in the Allocation of Migrants; Remittances and Economic Growth: The Cases of Burkina Faso and Senegal


The objective of this research is to assess the impact on growth of reallocating migrant remittances for savings/investment purposes. It focuses on two countries in the ‘West African Economic and Monetary Union (WAEMU)’ zone (Burkina Faso and Senegal). The methodological approach adopted is dynamic Computable General Equilibrium (CGE) modeling that integrates a procedure for reallocating remittances. Simulation results show that an increase in the propensity to save as a result of reallocation of remittances received by households for savings purposes leads to an increase in economic growth.

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