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The impact of remittance income on rural households in China

Author

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  • Steve Snyder
  • Wen S. Chern

Abstract

Purpose - The objective of this paper is to evaluate the impact of remittance income on rural households in China. Design/methodology/approach - Using data from a large survey of farming households in three Chinese provinces, the impacts of remittances and other types of income on consumption, production expenditures is evaluated. The econometric models used in this study include logit, tobit and ordinary least squares models. Findings - It is found that remittances increase nondurable consumption, but not as much as local wages and that there is no difference in the impact on agricultural production spending between remittance and local wages. The large majority of remittances are reported by the households of non‐permanent migrants, suggesting that the fear of losing land allocations has a strong impact on migration decision. Originality/value - The paper uses a large data set from three distinct provinces of China and is among the first to investigate the different types of remittance and their impacts on both consumption and production activities of Chinese rural households.

Suggested Citation

  • Steve Snyder & Wen S. Chern, 2009. "The impact of remittance income on rural households in China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 1(1), pages 38-57, January.
    • Handle: RePEc:eme:caerpp:v:1:y:2009:i:1:p:38-57
    DOI: 10.1108/17561370910915357
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    Citations

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    Cited by:

    1. Li, Yuheng, 2012. "Rural Household Income in China: Spatial-Temporal Disparity and Its Interpretation," Working Paper Series 2012-21, Stockholm School of Economics, China Economic Research Center.
    2. Shao, Shuai & Li, Baoli & Fan, Meiting & Yang, Lili, 2021. "How does labor transfer affect environmental pollution in rural China? Evidence from a survey," Energy Economics, Elsevier, vol. 102(C).
    3. Hu, Feng & Xu, Zhaoyuan & Chen, Yuyu, 2011. "Circular migration, or permanent stay? Evidence from China's rural-urban migration," China Economic Review, Elsevier, vol. 22(1), pages 64-74, March.

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