International Remittances and the Household : Analysis and Review of Global Evidence
This paper examines the economic impact of international remittances on countries and households in the developing world. To analyze the country-level impact of remittances, the paper estimates an econometric model based on a new data set of 115 de...
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/02/7335587/international-remittances-household-analysis-review-global-evidence http://hdl.handle.net/10986/7146 |
| Summary: | This paper examines the economic impact
of international remittances on countries and households in
the developing world. To analyze the country-level impact of
remittances, the paper estimates an econometric model based
on a new data set of 115 developing countries. Results
suggest that countries located close to a major
remittance-sending region (like the United States,
OECD-Europe) are more likely to receive international
remittances, and that while the level of poverty in a
country has no statistical effect on the amount of
remittances received, for those countries which are
fortunate enough to receive remittances, these resource
flows do tend to reduce the level and depth of poverty. At
the household level, a review of findings from recent
research suggest that households receiving international
remittances spend less at the margin on consumption
goods-like food-and more on investment goods-like education
and housing. Households receiving international remittances
also tend to invest more in entrepreneurial activities. |
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