Receipt Of Remittances Research Articles

Remittance Inflow, Investment, and Economic Growth in Africa amidst COVID-19 Pandemic

Africa has fared well in the aspect of remittance receipts in recent years; however, the region recorded a decline in remittances amid the COVID-19 pandemic which constrained the circular flow of income significantly and ultimately economic growth. In view of this, this study investigates the economic effects of remittance inflows and investment on economic growth in Africa amid COVID-19 pandemic using a panel of 48 economies and estimated with pooled OLS and two-step system GMM. The study employed two distinct approaches for estimation; pre-COVID-19 (2010–2019) and amid COVID-19 (2010–2023). The results indicate that the behavior of remittances, investment and economic growth in Africa is not significantly different between pre-COVID-19 and amid COVID-19. That is, remittances remain a significant economic growth catalyst in Africa whereas investment is not (though with growth effect potential). Overall, the study concludes that African economic policy stakeholders and other relevant policy authorities should sustain the current remittance and labor policy frameworks with possible fine-tuning where applicable while doubling their investment efforts especially in productive sectors of the economy.

Remittances, inclusive finance and governance in selected African countries: empirical insights from the COVID-19 pandemic

This research intends to explore the effects of inclusive finance on remittances and how these international flows impact economic growth in selected countries from Africa from 1996 to 2020 from 1996 to 2020. As per the results of panel dynamics estimation, inclusive finance positively impacts remittances. Furthermore, remittances significantly and positively impact economic growth in countries with solid governance effectiveness. However, they do not affect economic growth in weak governance effectiveness groups. Finally, COVID-19 positively affects remittance receipt, and negatively affects economic growth. Inclusive finance offerings are a crucial transmission channel in receiving remittances to African countries, and governance effectiveness plays a substantial role here.

Slum dynamics: the interplay of remittances, waste disposal and health outcomes

AbstractSlum dwellers often fail to expend enough on waste disposal to have a healthy life, and remittances provide funds for a household to expend on the betterment of life conditions. This paper examines the impact of remittances on total monthly waste disposal expenditures and the impact of better waste disposal on monthly health expenditures among slum households in Bangladesh. Propensity score matching was adopted as an identification strategy to reduce selection bias. In this study, remittance includes both remittances received from within and outside Bangladesh. Remittance receipt equals 1 if a household receives remittances from within and/or outside of Bangladesh. Our results show that remittances increase expenditures on waste disposal by 28.77% to 32.74% among slum households in Bangladesh. Waste disposal expenditure is considered as an indicator of better waste disposal. Furthermore, we find that better waste disposal reduces total outpatient expenditures. A reduction in outpatient expenditure indicates that waste disposal results in better health conditions for slum dwellers. The findings of this study can be connected to Sustainable Development Goal 11, which targets sustainable cities and communities and suggests that remittances are a bottom-up financial mechanism for improving waste disposal at the micro level to improve health status. Graphical abstract

Exploring how mobile money adoption affects nutrition and household food security

AbstractThis paper explores how using mobile money services affects food security and nutritional status of households in Tanzania. This study uses data obtained from three waves of the Tanzanian National Panel Surveys and the instrumental variable (IV) approach. The evidence from this paper shows that using mobile money services resulted in household's enhanced nutritional and food security status. Households' receipt of remittances is the main pathway in which using mobile money services influences the food security and nutritional outcomes among households in Tanzania.

Remittances and political participation in the Middle East and North Africa

ABSTRACT How does the receipt of remittances affect the likelihood of engaging in civic and political activities in the Middle East and North Africa? Research in Latin America and Africa has found two contradictory effects. Remittances can increase recipients’ capacity for political participation by providing them with greater economic resources. But remittances may also reduce the incentive for political participation by lessening the importance of the domestic economy to the livelihood of recipients. Using survey data from Arab Barometer, I show that remittances are associated with a greater likelihood of engaging in non-electoral political activities, including protests, strikes and contacting elected officials, and (to a smaller extent) with electoral participation. To explore the relationship between remittances and political participation in greater depth, I report the results of interviews with 54 remittance-receiving families in Jordan and Tunisia. This qualitative evidence suggests that the greater relative economic security offered by remittances allows recipients to devote more resources, particularly time, to civic and political participation. The interviews also revealed a strong conditioning effect of gender: women are more likely to use remittances to donate time and money to non-political civil society organisations, while men are more likely to use remittances to conduct explicitly political activities.

Remittance and Macroeconomic Performance in Top Migrating Countries

Globalization opens up economies and encourages the free movement of persons and factors of production. Diaspora investors and workers earn income in the process and make remittances to the migrating countries. We examine the impact of the remittance inflow on the macroeconomic performance of top emigrating countries, which comprise nine emerging and two advanced economies. We conduct group and individual country analyses with distinct econometric models (Feasible Quasi Generalized Least Squares and Dynamic Common Correlated Effects) using data between 1987 and 2021. The results reveal positive impact of remittance inflows on nominal GDP and nominal GDP per capita and on real GDP and real GDP per capita, although evidence on the latter is weaker. In all, the emigrating countries can benefit from diaspora remittance in terms of improved productivity and macroeconomic performance. We therefore recommend better systems to facilitate remittance receipt and policies to channel such flows more into investment activities.

The international transmission of local economic shocks through migrant networks

Using newly validated data on geographic migration networks, we study how labor demand shocks in the United States propagate across the border with Mexico. We show that the large exogenous decline in US employment brought about by the Great Recession affected demographic and economic outcomes in Mexican communities that were highly connected to the most affected markets in the US. In the Mexican locations with strong initial ties to the hardest hit US migrant destinations, return migration increased, emigration decreased, and remittance receipt declined. These changes significantly increased local employment and hours worked, but wages were unaffected. Investment in children’s education also slowed in these communities. These findings document the effects in Mexico when potential migrants lose access to a strong US labor market, providing insight into the potential impacts of stricter US migration restrictions.

An empirical appraisal of the non-linear nexus between foreign remittance receipts and carbon emissions intensities

The Indian government’s 2070 carbon-neutrality agenda has glorified the urgency of designing roadmaps that would enable this highly polluted South Asian nation to become carbon-neutral. In this regard, considering the nation’s interim objective of significantly reducing its carbon emission intensity figures, this study explores how different macroeconomic factors influence India’s carbon emission intensity levels of economic output and energy use within the 1975-2021 period. Among the key findings derived form the empirical investigations, the duality of the nexus between foreign remittance receipts and environmental quality is verified. Precisely, the results endorse the inverse U-shaped relationships between foreign remittance receipts and both measures of carbon emission intensities, but only for the long run scenario. Besides, the carbon emission intensity-boosting impacts of energy consumption and urbanization are also affirmed by the results. However, technological progress is found to reduce the carbon emission intensity of economic output while boosting the carbon emission intensity of energy use in the long run. Additionally, the long-run carbon emission intensity of energy use-surging impact of financial development is confirmed, as well. On the other hand, in the short-run, the results further certify that technological progress boosts carbon emission intensity of economic output while more consumption of energy resources amplifies carbon emission intensity of energy use levels in India. Furthermore, for the majority of the cases, the causality test's outcomes support these above-mentioned findings. Thus, as part of policy recommendations, several strategies are prescribed to assist India in realizing its carbon emission intensity-reducing target.

NIGERIA: COMPOSITE INDICATOR OF FOOD INSECURITY IN ITS CONFLICT AFFECTED REGIONS AND ITS DETERMINANTS. A HETEROSCEDASTICITY CONSISTENT TOBIT MODEL

Abstract: Conflicts constitute some negative influences on households’ economic activities. In Nigeria, the past few years have witnessed progressive crises in some states and the growing level of insecurity is affecting households’ economic livelihoods. This paper analyzed the determi nants of food insecurity indicator in conflict-affected regions in Nigeria. The data were collected in 2017 from 582 respondents in the North East, North-central, and South-South zones. The data were analyzed with Principal Component Analysis (PCA) and heteroscedasticity consistent Tobit regression. The results showed that in the combined data, the average number of days per week that respondents relied on less preferred food, limited food portions, and reduced the number of meal per day were 3.42, 2.68 and 2.33, respectively. The PCA was used to generate indicator of food insecurity, with North-East, Northcentral, and South-South zones having average indices of 0.16, -0.09 and -0.02, respectively. The Tobit regression results revealed that in the combined data, food insecurity was promoted by household size, urban residence and receipt of remittances, but reduced by unchanged income, credit purchase and reliance on food aid. In north central, food insecurity was promoted by receipt of remittances, but reduced by ability to grow own crops. In the north eastern zone, food insecurity was promoted by urban residence, income increased, and increase in food prices, but declined by income unchanged, and pension income. In the South-South zone, food insecurity was promoted by household size, urban residence and receipt of remittance income, but declined by credit purchase and unchanged income. It was concluded that addressing food insecurity among residents in conflict-affected areas requires preferential assistances to large families, urban residents, and those with high dependence on remittances. However, the promotion of initiatives for credit purchase, food aid the and ability to grow own crops are potentially able to reduce food insecurity. Keywords: Food insecurity, conflict, remittances, food aid, credit, Nigeria.

Long-Term Impact of Inflation and Macroeconomic Variables on Foreign Exchange Reserves in the Organization of Islamic Corporation

This study examines the long-term influence of inflation variables, Gross Domestic Product (GDP), exports, imports, and remittance receipts in 7 countries of the Organization of Islamic Cooperation (OIC). This research is expected to contribute to OIC countries related to increasing foreign exchange reserves through inflation control, increasing export diversification, decreasing imports, and increasing remittances while still paying attention to people working abroad. Thus, it can improve the economic level of the OIC country and support international peace and security and protect the holy places of Muslims.

Examining the Nonstationary Spatial Association Between International Migration and Vulnerable Older People Living Alone in Mexico

Research on the intersection of migration and ageing is becoming increasingly relevant as older populations grow in developing countries. Understanding the challenges faced by older people, who are often left behind due to their vulnerable position, is essential for policy-making. This research examines the geographical variation in the impact of international migration on the living alone status of older people in Mexico, particularly those most at risk. The following municipal-level information was obtained from the 2020 Census: international migration, living alone, receipt of remittances, and disability. Using geographically weighted regressions, we found geographical variations in the association between international migration and living alone or being more vulnerable. Controlling for socio-demographic factors, in the southern states international migration is associated with a reduction in the proportion of adults living alone and greater vulnerability due to disability or lack of support from other households. This relationship holds for both men and women. However, in some border regions the proportion of older adults living alone and experiencing greater vulnerability increases with increasing migration, especially for women.

The Influence of Inflation, Foreign Investment and Receipt of Remittances on the Rupiah Exchange Rate in 2014 – 2018

The purpose of this study was conducted to determine the effect of inflation, foreign investment, and remittances on the rupiah exchange rate in 2014 - 2018. This type of research is a quantitative approach where this data is of secondary data type in the form of time series. This data is taken from BPS and Bank Indonesia websites. This research method is multiple regression with the OLS model assisted by processing with the Eviews application. The results showed that inflation with the rupiah exchange rate was negatively related, where if inflation increased, the rupiah exchange rate weakened and vice versa, foreign investment did not have a significant effect on the exchange rate and remittances had a significant effect on the exchange rate.

Financial inclusion choices in post-conflict and fragile states of Africa: The case of Burundi

Financial inclusion has become an important goal of the global development agenda, particularly for post-conflict and fragile states. Enhancing financial inclusion is vital for a country like Burundi which aims to achieve inclusive growth in its attempt to break free of its fragility. However, the adoption of instruments of financial inclusion such as bank account, microfinance account and mobile money account is low due to weak institutional capacity leading to high-risk exposure and a greater risk of economic instability. This study examines the factors that influence the adoption of these instruments of financial inclusion using the Multivariate Probit and Poisson regression models. The results show that there is a significant correlation between the instruments of financial inclusion, signifying that the adoption of these instruments is interrelated. The analysis also reveals that, factors such as receipt of government transfers, receipt of remittances, education, membership of a social network, access to electricity, employment status, and area of residence influence both the probability and intensity/extent of adoption of the instruments of financial inclusion. By implication, policymakers should enhance access to electricity, formalise employment and strengthen social networks to improve the adoption of financial inclusion instruments.

Welfare Effects of Smallholder Export Participation: Evidence from Panel Data in Kyrgyzstan

The involvement of small-scale farmers in markets is crucial to alleviate poverty in low- and middle-income countries. In this study, we examine the determinants and welfare implications of export participation for smallholders in Kyrgyzstan, utilising household-level panel data for the period of 2010-2013 and employing fixed-effects panel estimations. Our research reveals that the decision to participate in exports is primarily influenced by the geographical location of the farmers and their receipt of overseas remittances. Furthermore, we find no significant welfare effects from exporting when assessed using three welfare indicators. Consequently, we conclude that in the absence of organised export value chains, trade liberalisation does not yield clear welfare benefits for small-scale farmers in impoverished countries.

Negotiating Gender Roles and Power Relations Through the Management of International Migrant Remittances in a Patriarchal Community in Ghana

This paper draws on a feminist poststructural perspective to examine gendered dimensions of sending and managing international migrant remittances in a patriarchal community in Ghana. It relies on primary data collected through in-depth interviews, focus group discussions, and observation in Nkoranza, a Ghanaian community with a long history of international migration and receipt of remittances, to analyze the fluidity of gendered and intergenerational power relationships associated with managing remittances. The findings show that males and females perform different roles as remitters and managers of remittances. While the patterns of sending and receiving remittances tend to conform to gender norms, which construct men as providers and women as carers, these subject positions are fluid. Although men are generally reluctant to perform traditional female roles even when their wives migrate, gendered and intergenerational power relations are being negotiated through the sending and management of remittances.

A regional appraisal of electricity accessibility determinants: the relevance of international remittances, clean energy, income inequality, and institutional quality.

The majority of developing nations worldwide face severechallenges in ensuring universal electricity access for their respective populations. Hence, this study focuses on assessing the factors stimulating and inhibiting national electricity accessrates in 61 developing nations from six global regions during the 2000-2020 period. For analytical purposes, both parametric and non-parametric estimation techniques that are efficient in handling major panel data-related problems are used. Overall, the results reveal that a higher influx of remittances sent by the expatriates does not directlyinfluence electricity accessibility. However, adoption of clean energy and improvement in institutional quality promote electricity accessibility while higher income inequality undermines it. More importantly, good institutional quality mediates between international remittance receipts and electricity accessibility as results endorse that international remittance receipts and institutional quality improvement jointly exert electricity accessibility-promoting impacts. Moreover, these findings depict regional heterogeneity while the quantile-based analysis highlights contrasting impacts of international remittance receipts, clean energy use, and institutional quality across different quantiles of electricity accessibility. Contrarily, worsening incidences of income inequality are evidenced to undermine electricity accessibility across all quantiles. Therefore, considering these key findings, several electricity accessibility-boosting policies are suggested.

Remittance Flows and Health Outcomes in Nigeria: Implication for Economic Growth

Remittance flows have usually been channelled to the improvement of health outcomes among its recipients in different countries of the world. Its implication for the overall wellbeing of the people and growth of the economy has been tremendous. This study therefore examined remittance flows and health outcomes in Nigeria and its implication for economic growth. Using time series data set from 1980 to 2019, VAR-granger causality approach, and VAR-impulse response function method, it was found that personal remittances granger causes out-of-pocket health expenditure. The results of the VAR-impulse response function indicated that shocks to life expectancy exert positive significant impact on economic growth. Similarly, shocks to mortality rate have positive significant influence on economic growth. However, shocks to personal remittances exert significant negative impact on the Nigerian economic growth. Policies that support the free flow of remittances should be put in place by the government. Again, households should use their remittance receipts largely on expenditures that promote their health and well-being.

Household inequality and remittances in rural Thailand: a life-cycle perspective

Abstract This article studies the dynamics of income inequality among a panel of rural households in Thailand. In contrast to the many cross-section studies of income inequality, the article exploits a long panel data set to examine lifetime trajectories of household inequality. It finds that income inequality is decreasing over time within cohorts delineated by decennial birth dates of heads of household. This decline in inequality primarily arises from differences in receipt of remittances from adult children of the head of household who live outside the village of origin. On average, poorer households receive remittances from a larger number of children, the annual amount remitted per child is a greater proportion of household income than in richer households, and the importance of remittances in household incomes grows as the head of household ages.

Remittances and food security in Bangladesh: an empirical country-level analysis.

To examine the association between remittances and food security in Bangladesh, controlling for other key factors. The secondary data analysis was performed on the most recent (2016) nationally representative Household Income and Expenditure Survey. We used logistic regression models to measure the association between food security of the household and remittances received. The household food security was measured based on expenditure on food items and the energy intake of the household members. The key explanatory variables included the receipt of remittances by the household and household-level socio-economic characteristics. Bangladesh. Totally, 45 977 households across seven divisions of Bangladesh. Findings suggested that remittances have a significant positive effect on food security. Further, the households with female heads were significantly more likely to be food insecure. The wealth status and geographical locations were significantly associated with food security status in Bangladesh. The findings highlight the importance of considering remittance as one of the key factors, while stakeholders implement nutritional interventions in Bangladesh and other low-income settings. Future research should consider this as an important determinant while further examining food security in such settings.

The effect of international remittances on labour supply in Jordan: an empirical investigation

PurposeThe purpose of the current study is to examine the effect of international remittances on the labour market participation of women and men left behind in Jordan. The study particularly focuses on the labour supply side for both women and men.Design/methodology/approachThe study draws on micro-data from the Jordan Labour Market Panel Survey (JLMPS) in 2010, a nationally representative survey, and addresses the endogeneity of receiving remittances through an Instrumental Variable (IV) approach.FindingsThe empirical results indicate that remittances are found to have a negative and significant impact on labour supply of both women and men. On average, women who live in remittance receiving household are about 5% points less likely to perform any market work, 3% points less likely to be in wage employment and about 8% points less likely to be engaged in own work. While, men who live in remittance receiving household are about 25% points less likely to perform any market work, 5% points less likely to be in wage employment and about 10% points less likely to be engaged in own work. When the author instruments for remittance receipt of the household, the effect of remittances on likelihood to work is found larger for both women and men.Originality/valueWorkers' remittances are considered as one of the vital financial sources for many households in labour exporting countries, most of the investigation on the effects of such financial flows concentrate on the macroeconomic effects. It is therefore important to conduct empirical investigation to fairly and accurately evaluate the impact of these flows on the Jordanian labour market at a microeconomic level.