Share Of Remittances Research Articles

Contribution of remittances to Mexican household income and healthcare

The article aims to analyze the participation of remittances in household income in Mexico in 2018 and 2020 and their role in healthcare during the pandemic by COVID-19. First, it examines the variation in the share of remittances in the income of Mexican households before and during the pandemic. Then, it analyzes the use of remittances in spending on health care. The statistical overview of household income and expenditure in the country is described with national survey data. Examining remittance dynamics in Mexican household incomes before and during the pandemic provides a valuable understanding of their relationship to healthcare. The results suggest that the increase in remittances was due to the weakening of other sources of income because of the economic contraction caused by the health crisis. In addition, these resources were used, to a considerable extent, to cover health and funeral expenses, which represented unexpected expenditures for households.

Does rural transformation affect rural income inequality? Insights from cross-district panel data analysis in Bangladesh

Rural transformation plays a crucial role in enhancing the income and employment prospects of the rural labor force. We investigate the effects of rural transformation on rural income inequality at the district level in Bangladesh using data from five years of nationally representative Household Income and Expenditure Surveys. The Gini coefficient is used to measure rural income inequality. In contrast, the share of high-value agricultural outputs and the share of rural non-farm employment are used as indicators of rural transformation. We find that rural income inequality is positively associated with the share of high-value agricultural outputs and the share of rural non-farm employment. The non-linear regression result shows an inverted U-shaped relationship between rural transformation and income inequality, which indicates that income inequality initially increases with rural transformation but decreases in the long run. Additionally, we find that rural income inequality is positively correlated with the proportion of household education expenditures, agricultural rental activity, and the share of remittances. This study also reveals that income inequality in rural areas of Bangladesh has a significant negative correlation with the government's social safety net program.

A Systematic Literature Review on Migration and Remittances in Mountainous Regions: Key Takeaways for Phuthaditjhaba, Free State, South Africa

Remittances are essential to the sustainability of economies in mountainous regions that face massive labour migration due to limited income generation and employment opportunities. In 2021, the share of remittances in GDP in the top 10 mountainous economies in the world was over 20%. Nonetheless, most are characterised by relatively lower GDP per capita and high poverty levels. Drawing a comparison with other mountainous areas, Phuthaditjhaba, an emerging mountainous city of South Africa on the border with Lesotho, faces similar out-migration and inferior socio-economic parameters. A global systematic literature review on the impact of remittances on livelihoods, specifically targeting mountainous areas, is missing. We, therefore, interrogate the role that remittances can play in Phuthaditjhaba. To inform our intended research, we seek to draw lessons from evidence on how migration and remittances affect mountainous communities globally. Accordingly, we carry out a systematic literature review (SLR) based on an updated Preferred Reporting Item for Systematic Reviews and Meta-Analysis (PRISMA) 2020 statement supported by bibliometric (co-word) analysis (BA) in VOSViewer. We collected data from the Scopus and Dimensions websites and drew 165 publications, of which only 88 were included after exclusion and inclusion assessments. The PRISMA results show that Mountain Research and Development, Russell King, and Nepal are the most productive and cited journal, the most productive and cited author, and the most researched country, respectively. The bibliometric analysis on keyword co-occurrences revealed that women, agriculture, labour migration, land management, forest, and poverty are the research hotspots. In light of these findings, we proffer important recommendations for future researchers and policymakers and identify thematic research areas for Phuthaditjhaba.

Harnessing on the potential of migrants in the socio-economic development of the Republic of Moldova

Migration is an important component of the development of the Republic of Moldova at the current stage. The economic and social instability that followed after obtaining political independence in 1991, the inefficiency of reforms in several socio-economic fields, the institutional uncertainty led the population to migrate, this being a strategy to adapt it to the created conjuncture situation. The increase in intensity migration was also influenced by the processes of liberalization of entry and exit procedures from the territory of the Republic of Moldova. Currently, our country represents one of the countries in the world with the largest shares of the migrant working population, as well as the share of remittances in GDP, the effects of migration being felt in all areas of social-economic life in the country. Concern for the support of migrants over time has materialized through the creation of governmental structures with the aim of monitoring and launching various strategies, programs, projects addressed to citizens outside the country's borders. Ensuring the reintegration of returned migrants, after a migratory experience of work or life abroad, is of great importance both for citizens and for the state authorities that have the duty to support emigrant citizens regardless of their options to return or settle in the adoptive country. Through this scientific approach, the authors propose to analyze the effectiveness of the tools used by the institutional, banking and social systems in harnessing on the potential of migrants, as well as the extent to which they are known, meet the expectations of citizens in the process of return and reintegration, their accessibility, transparency and efficiency. A sustainable socio-economic development of the Republic of Moldova, in the context of clear aspirations for European integration, will create opportunities for citizens wishing to return, work and live in the country.

The Influence of Economic Indicators of the Country on Youth International Migration: a Comparative Analysis

Human capital represented by young people is becoming an important potential for the country’s development . To reduce young people’s migration flows , it is necessary to know what influences their decision to leave the country . The purpose of this work is to study economic factors of youth migration globally through the literature review and to conduct a comparative analysis of economic indicators between the member-states of the Eurasian Economic Community. The methodology is based on the most similar and the most diverse systems , which are widely used in comparative studies . Accordingly , a small number of cases were selected based on similar models used . An analysis of similarities and identified differences between countries was carried out . The study included three stages : literature review , indicators selection and comparative analysis . Comparative analysis was based on four indicators , such as public spending on R&D, the total number of emigrants , the share of remittances in GDP and the unemployment rate . The data was collected from open sources . According to the literature review , investment in R&D was found to have a strong influence on the decision of emigrants , especially young people , to migrate . The analysis showed strong similarities between Armenia , Kyrgyzstan and Belarus regarding unemployment and educational indicators . The results for Russia and Kazakhstan confirmed the assumption of utility theory , according to which young people usually leave for the sake of better educational programs . The results of this study can be used to improve and adjust the youth and migration state policy , which may reduce the migration of young people abroad .

Financial remittances and election turnout in the municipalities of the Republic of Serbia: the economy of voting

This paper investigates possible evidence on whether remittances from abroad have had a significant influence on the outcome of Serbia’s presidential elections. Using the linear random-intercept model and based on presidential- election data for municipalities between 2002 and 2017, the study finds that voter turnout rates were positively related to the share of remittances in the municipalities’ GDP per capita. For a 1% increase in the share of remittances in municipalities’ GDP, the voting turnout increases by 0.31% on average. Also, regarding the within-municipality effect, as the share of remittances in GDP increases over time by 1%, voter turnout decreases by 0.42%. Further, it reveals how the size of the population temporarily abroad had a negative effect on voter participation throughout the entire period examined across both municipalities and time. The study also captures the effects of education and ethnicity. Specifically, as the share of highly educated people increases by 1% over time, so the election participation rates in a particular municipality also increase by 0.83%. After introducing categorical variables for the ethnic composition of the municipality, the study finds that in municipalities with a non-Serb majority, the level of participation was on average 3.31% lower, from 2002 to 2017. Finally, a statistically significant difference in voter turnout was recorded between the economically most developed and the least developed regions: the most developed region had on average 7.71% higher election participation than the region characterized by high emigration and large financial inflows. As far as Serbia is concerned, the final results confirm the findings of previous literature that the economical vacuum, created by the disappearance of state support, is filled by remittances. Possible reasons for the results are discussed. Keywords: Republic of Serbia, temporary migrants, financial remittances, voter turnout, municipality

Do Remittances Stimulate Business Cycle in Nigeria?

Remittance inflow to Nigeria is large, relatively stable and increasing. The major source of government revenue is oil proceeds, a commodity that is prone to external shocks. The economy of Nigeria is prone to possible external shocks owing to unstable international commodity prices. However, studies have shown that if remittances are large and stable, it may act as shocker absorber, provided remittances are countercyclical. This study therefore seeks to carry out an empirical investigation to shed more light on the nature of remittances cyclicality in Nigeria. The study utilizes Hodrick-Prescott filter as a measure of cyclicality and employs autoregressive distributed lag (ARDL) method based on the motives of remitting with quarterly data between 2009:q1 and 2019:4. Two measures of remittances are employed, namely remittance size and the share of remittances in GDP (remittance intensity). The results indicate that in the short run, remittances size is asynchronomously countercyclical while remittances intensity is both contemporaneously and asynchronomously countrercyclical. Meanwhile, the size of remittances is contemporaneously procyclical. Specifically, remittances show a sign of countercyclicality initially but in three months later, it actually stimulates the economy. Further, remittances behave countercyclically as its share in GDP increases. Further, depreciation of exchange rate, increase in the income of the source countries and increase in the price levels of urban and rural enhance remittances. In the long run, remittances are a-cyclical but other variables, particularly the economies of the host countries (US and UK) matter importantly for remittance inflow. In this case, more improved economic conditions of these countries engender more remittances to Nigeria. The policy implication from the foregoing is that the authorities can leverage on remittances to ease the pressure of their financial responsibility during external shocks. Meanwhile, the economies of the host countries, particularly the UK must be closely monitored because if the country faces serious economic crisis, it may dampen the countercyclical ability of remittances in Nigeria.

CAN REMITTANCES BOOST TAX REVENUES IN ZIMBABWE? A SECONDARY QUARTERLY TIME-SERIES ANALYSIS

The study applied the ordinary least squares (OLS) technique on quarterly time-series data to analyze if remittances can boost tax revenue in Zimbabwe. The main challenge faced in Zimbabwe is the insufficient tax revenues to finance growing public spending needs. Results indicate that the share of remittances both in the current and lagged period significantly influenced income tax revenue and the volume of manufacturing. Trade openness was found to be insignificant. Similar results were also observed for the variables when value-added tax to total revenue was the dependent variable. When lagged variables were taken into account, results showedthat only remittances were significant. Thus, increased remittance inflows have significant potential to generate more taxes for the government through income and consumption taxes. The study recommends the creation of platforms, which stimulate and attract more remittances, such as reducing costs of sending remittances through formal channels. Secondly, good governance and quality institutions provide appropriate economic environment and growth policies. Economic growth fosters increased and sustainable tax due to an increased tax base.

The pattern, sources, and growth of remittances to Pakistan: The kinked exponential approach

This paper examines the pattern, sources and growth of remittances to Pakistan. It analyses the growing trend of remittances and share of remittances to GDP over the period 1972-2014. We use the kinked exponential model (Boyce, 1986, 1987) to estimates the growing trend of remittances in Pakistan. The results show that remittances received by Pakistan have three distinct growth phases over the study period – Phase I (1973 – 1983), Phase II (1984 – 2000) and Phase III (2001 – 2014). The remittances received by Pakistan have positive growth during the first and the third period while the second period shows negative growth. Before globalization, the UK was the major source of remittances to Pakistan but after globalization, the sources of remittances to Pakistan have been cantered on Saudi Arabia, the UAE, and other Gulf countries.

An Empirical Study on the Relationship between Remittances and Economic Growth: The Turkish Experience in the Period of 1974–2018

Remittances, which tend to increase continuously in the world, affect the economies which accept high remittances in many ways. Therefore, many studies have been put forward regarding the macroeconomic effects of remittances. In this study, the impact of remittances on economic growth is analyzed by ARDL bounds testing approach for the period of 1974-2018 in Turkey. According to the findings, remittances haven’t a statistically significant effect on economic growth in the long-run. The most important factor in this finding is the declining trend of remittances in the Turkish economy. Although remittances have increased around the world, the share of remittances in the Turkish GDP is quite low.

Intensity of labour migration and its determinants: insights from Indian semi-arid villages

The aim of this study was to examine the potential factors that determine the intensity of labour migration at household level for selected semi-arid villages in two states of India: Telangana and Maharashtra. In doing so, we use panel data for selected migrant households that were compiled from the household survey conducted by International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) for the period 2005–2014. We follow empirical analysis by employing state and aggregate level least squares dummy variable (LSDV) models to demonstrate how factors at each of these level can influence intensity of migration. The study finds that the main determinants of intensity of migration are family size, dependency ratio, age of the head of the household, ownership of the land and livestock owned by the household. Apart from these major factors, share of remittances in household’s total income mostly drives the migration intensity in each of the estimated regression models.

Evaluation of the Long-Term Stability and Impact of Remittances and Development Aid on Sustainable Economic Growth in Developing Countries

In our paper, we analyse the long-term stability and impact of remittances and development aid on sustainable economic growth in developing countries. We use two data samples from countries that were recipients of both aid and remittances in the corresponding period. First, unbalanced data from the years 1970 to 2017; that is, how countries appear in the data. Second, balanced data, where we selected the largest possible set of countries for which data exists without gaps from the years 1970–2017. This dataset consists of 57 countries for the period from 1991 to 2017. Using linear regression models, we conclude that up until the end of the 1980s, the size of aid as a share of gross domestic product (GDP) was larger than the share of remittances. After that, the situation changed and the shares of both inflows were broadly similar. The inflow of remittances was more stable than the inflow of aid and development aid did not (on the contrary to remittances) contribute positively to sustainable economic growth if we consider the entire period between 1970 and 2017. Our results suggest that a statistically significant relationship between development aid and economic growth (per capita) may be observed only in the period from 1990 to 1999. Economic growth in developing countries is negatively influenced by the uncertainty related to the flows of official development assistance (ODA) and aid in all investigated decades. In the case of the remittance flows, the increased volatility tends to contribute negatively to sustainable economic growth only when the remittance flows represent a relatively higher share of GDP.

Https://www.iiste.org/Journals/index.php/JEDS/article/view/42443

Using Johansen’s co-integration test, this paper is conducted to investigate the effect of foreign remittances on economic growth by collecting time series data from 1982 to 2015 from the world data bank. Results indicate that there is a long run relationship between foreign remittances and economic development. Furthermore study applies error correction model ECM to detect the short run adjustment in variables to attain equilibrium in the long run. The results show that remittances have a significant positive impact on China economic growth both in the long run and in the short run, indicating that remittances can accelerate China economic growth. The conclusion suggests that remittances in China are currently profit- driven and a considerable share of remittances has already entered production investment. Keywords: Foreign remittances, Economic growth , Time Series Analysis

Emigration of Nepalese People and Its Impact

This paper reflects the emigration history of Nepalese people and their destinations with role of remittances in country of origin (Nepal). The number of emigrants and share of remittances in terms of GDP has been increased but at the same time various negative impacts have been emerged in Nepalese society. In addition trade deficit has been increased and Nepalese emigrants who are working abroad are not being able to receive their rights at their working place. Discriminations in terms of earning and other privileges are common for Nepalese emigrants and due lack of skills, trainings and low level of education mainly 3D (Difficult, Dirty, Dangerous) jobs secured at their working places, as a result the earning/remittances are also low. This paper is based on secondary sources of information and briefly explains the history of emigration and its impacts in socio-economic sectors of Nepal. Economic Journal of Development Issues Vol. 19 & 20 No. 1-2 (2015) Combined Issue, Page: 77-82

Relationship between remittances and rural primary education: a case study on a group of remittance beneficiaries

Today nearly two million Sri Lankans are employed abroad generating US Dollars 7 million annually, accounting for 8 percent of Gross Domestic Product. Most of the studies pertaining to Sri Lanka are confined to the benefits of migration on rural communities and members left behind by increasing household income. However, there is little focus on the impact of remittance on educational productivity. In this context, this study was conducted with the main objective of investigating the impact of remittance on primary education in rural community. The data collection was conducted using a pre-structured questionnaire in Galewela Divisional Secretarial with a sample of 45 households receiving remittances through a selected private bank and another 45 households who are non- recipients of remittances with children obtaining primary education. The findings of the study revealed that migrant households spend a higher proportion of remittances on primary education than non-migrant households. It was found that according to the parental perception of migrant families, the productivity of rural primary education has increased after the investment of remittances. But according to the statistical comparison using two sample t- test focused on the level of primary education among migrant and non-migrant families, it is revealed that remittances have no significant impact on the productivity of rural primary education. Through the regression analysis conducted to find the factors affecting rural primary education, it was concluded that parental absence and time allocation of mother for children's education play an important role than the share of remittances allocated for education.

Production efficiency of rice farms in Thailand and Cambodia: a comparative analysis of Ubon Ratchathani and Stung Treng provinces

Rice farmers in developing countries need to increase production efficiency in order to meet a growing rice demand. To identify and compare the determinants of rice production efficiency at different stages of economic development, a one-stage stochastic frontier model is applied to a cross-sectional dataset collected in 2013 of 623 households in Ubon Ratchathani (Thailand) and 407 households in Stung Treng (Cambodia). The results indicate that the average level of rice production efficiency is 72 % in Thailand and 64 % in Cambodia. There are a number of factors that commonly affect the production efficiency in both countries. These factors are the farm size, per capita income, amount of agricultural credit, degree of commercialization, and share of nonfarm income. However, there are also a number of country-specific factors that are unique to the respective environments. These factors are the distance to fields, mechanization, agricultural assets, share of remittances, education of household heads, and distance to town in Thailand, and household size in Cambodia. These findings suggest that promoting the development of household capital, access to rural infrastructure as well as the specialization and commercialization of rice production would contribute to increasing production efficiency of rice farms in developing countries.

Prospects for Ukraine’s integration into the EU labour market in the context of the Ukraine - EU Association Agreement

Upon signature of the Association Agreement Ukraine has gained an opportunity to deepen its integration into the European labour market. Such integration plays an important role given the fact that about half of the labour migration is directed towards the EU and the share of remittances from the EU amounts to over 30% of total revenues from migrant workers. The Agreement stipulates that the EU and Ukraine shall make joint endeavours to tackle the root causes of migration, establish an effective against illegal migration while legally employed workers from Ukraine and the EU shall guaranteed equal rights and the need to expand the number of bilateral agreements on employment between Ukraine and the EU Member States is declared as well. The Agreement provides for separate provisions on temporary presence of natural persons for business purposes that allow for employment of “key personnel” as well as for rendering of commercial services under a simplified procedure of stay in the host country. However, liberalisation of access of migrants from Ukraine applies primarily to skilled migration that generally corresponds to the common trend of implementing the EU immigration policy today. However, the issue of access to the national labour markets of the main part of labour migrants from Ukraine still remains in the domain of bilateral relations between Ukraine and the EU host countries.

Do International Remittances Affect Poverty in Africa?*

Abstract: International remittances flowing into developing countries are attracting increasing attention because of their rising volume and their impact on recipient countries. This paper uses a panel data set on poverty and international remittances for African countries to examine the impact of international remittances on poverty reduction in 33 African countries over the period 1990–2005. We find that international remittances—defined as the share of remittances in country GDP—reduce the level, depth, and severity of poverty in Africa. But the size of the poverty reduction depends on how poverty is being measured. After instrumenting for the possible endogeneity of international remittances, we find that a 10 percent increase in official international remittances as a share of GDP leads to a 2.9 percent decline in the poverty headcount or the share of people living in poverty. Also, the more sensitive poverty measures—the poverty gap (poverty depth) and squared poverty gap (poverty severity)—suggest that international remittances will have a similar impact on poverty reduction. The point estimates for the poverty gap and squared poverty gap suggest that a 10 percent increase in the share of international remittances will lead to a 2.9 percent and 2.8 percent decline, respectively, in the depth and severity of poverty in African countries. Regardless of the measure of poverty used as the dependent variable, income inequality (Gini index) has a positive and significant coefficient, indicating that greater inequality is associated with higher poverty in African countries, much in conformity with the literature. Similar results were obtained for trade openness. In the same vein, per capita income has a negative and significant effect on each measure of poverty used in the study. Our results also show that inflation rates positively and significantly affect poverty incidence, depth and severity in Africa. In all three poverty measures, the dummy variable for sub‐Saharan Africa is strongly positive, and strongly negative for North Africa. The policy implications of these results are discussed.

L'effet des transferts des migrants sur la déforestation dans les pays en développement

Résumé Cet article s’intéresse à l’effet des transferts monétaires des migrants internationaux sur l’environnement, à travers l’exemple de la déforestation dans les pays en développement. D’un point de vue théorique, l’effet des transferts migratoires sur la réduction des surfaces forestières apparaît indéterminé. Nous examinons cette relation à partir d’un échantillon comprenant 102 pays pour la période allant de 1990 à 2005. Le profil observé pour le PIB par tête s’avère contraire à l’hypothèse de courbe environnementale de Kuznets, tandis que la part des transferts migratoires reçus dans le PIB vient réduire le taux de déforestation pour l’ensemble des pays considérés. Classification JEL: O13, O15, Q23

Migration, Remittances, and the Distribution of Income: Evidence from the Pacific

This article discusses why it is not surprising that empirical studies of the effect of remittances on the distribution of income sometimes find that remittances increase inequality and sometimes find that they decrease it. As has been shown by Stark, Taylor and Yitzhaki (1986), the impact depends on the share of remittances in total income, the distribution of remittances, and where the recipients of remittances are located in the overall distribution of income. These factors differ across locations over time.