The Role of Remittances in Determining Economic Security and Poverty in Myanmar

Abstract

Myanmar has experienced growing labour outmigration and remittances during the past decade. Using data from a 2009/2010 nationwide household survey, this article examines how these remittances have impacted economic security and poverty in Myanmar. Findings suggest that while remittances help increase income and consumption directly, their impact on broader economic security turns out to be insignificant when other relevant household factors are controlled. In fact, remittance is linked to significantly lower food and total consumption expenditures, and greater incidence and degrees of poverty, resulting perhaps from the relatively small sizes of remittance from neighbouring Thailand. These and other findings have important policy implications for Myanmar’s attempt at broad-based socioeconomic development and deepening of international integration.