Remittances, Household Expenditure and Investment in Guatemala
AbstractSummary This paper uses a nationally-representative household data set from Guatemala to analyze how the receipt of internal remittances (from Guatemala) and international remittances (from United States) affects the marginal spending behavior of households. Two findings emerge. First, controlling for selection and endogeneity, households receiving international remittances spend less at the margin on one key consumption good--food--compared to what they would have spent on this good without remittances. Second, households receiving either internal or international remittances spend more at the margin on two investment goods--education and housing--compared to what they would have spent on these goods without remittances. These findings support the growing view that remittances can help increase the level of investment in human and physical capital in remittance-receiving countries.
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Bibliographic InfoArticle provided by Elsevier in its journal World Development.
Volume (Year): 38 (2010)
Issue (Month): 11 (November)
Contact details of provider:
Web page: http://www.elsevier.com/locate/worlddev
remittances consumption investment Guatemala;
Other versions of this item:
- Adams, Richard H. Jr., 2005. "Remittances, household expenditure and investment in Guatemala," Policy Research Working Paper Series 3532, The World Bank.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
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