Determinants and Effects of International Remittances: Evidence from Ratnagiri District of Rural Maharashtra.

Abstract

International emigration and remittance inflow is not a novel phenomenon for India. The present study examines the factors influencing emigration and size of remittance inflow. It also examines the effect of remittances on the economic wellbeing in terms of expenditure of the recipient households. In India, the remittance inflows are important source of funding for the recipient households in rural India. However, the studies focusing on the impact of international remittances on rural household wellbeing in India are rarely found in the literature. The study is based on the primary data collected from the villages in Ratnagiri District, Maharashtra, India. It uses logit and probit models to analyse the data. The results show a positive association between inward remittances and economic welfare and subsistence of the recipient households. Findings of the study show a strong negative relationship between the education of the household members and emigration.