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Economic impacts of international migration and remittances on household welfare in Vietnam

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  • Nguyen Viet Cuong
  • Daniel Mont

Abstract

Purpose – The purpose of this paper is to examine the impact of international remittances on different household welfare indicators including child education, assets, durable goods, and reservation wages of other working age household members. It examines how international remittances are spent for production and consumption by receiving households. Design/methodology/approach – This paper uses fixed-effect regressions to estimate the impact of international remittances on household spending in Vietnam using Vietnam Household Living Standard Surveys 2006 and 2008. Findings – It is found that most of international remittances are spent on housing and land, debt repayment and saving. A small proportion of remittances are used to buy durable goods. Remittances are not spent in production as well as living consumptions. The effect of international remittances on consumption-based poverty is very limited. Originality/value – The findings from this paper suggest that current international remittances are not an effective measure for poverty reduction in the short-run in Vietnam.

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Bibliographic Info

Article provided by Emerald Group Publishing in its journal International Journal of Development Issues.

Volume (Year): 11 (2012)
Issue (Month): 2 (July)
Pages: 144-163

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Handle: RePEc:eme:ijdipp:v:11:y:2012:i:2:p:144-163

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Related research

Keywords: Household welfare; Impact evaluation; Migration; Poverty; Remittances; Vietnam; Welfare;

References

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  1. Acosta, Pablo & Calderon, Cesar & Fajnzylber, Pablo & Lopez, Humberto, 2007. "What is the impact of international remittances on poverty and inequality in Latin America ?," Policy Research Working Paper Series 4249, The World Bank.
  2. Stark, Oded & Taylor, J Edward, 1991. "Migration Incentives, Migration Types: The Role of Relative Deprivation," Economic Journal, Royal Economic Society, vol. 101(408), pages 1163-78, September.
  3. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-18, October.
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  13. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June.
  14. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
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  16. Azam, Jean-Paul & Gubert, Flore, 2006. "Migrants' Remittances and the Household in Africa: A Review of Evidence," Economics Papers from University Paris Dauphine 123456789/5126, Paris Dauphine University.
  17. Sahn, David E & Alderman, Harold, 1996. "The Effect of Food Subsidies on Labor Supply in Sri Lanka," Economic Development and Cultural Change, University of Chicago Press, vol. 45(1), pages 125-45, October.
  18. Adams, Richard Jr. & Page, John, 2005. "Do international migration and remittances reduce poverty in developing countries?," World Development, Elsevier, vol. 33(10), pages 1645-1669, October.
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  20. Stark, Oded & Bloom, David E, 1985. "The New Economics of Labor Migration," American Economic Review, American Economic Association, vol. 75(2), pages 173-78, May.
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Cited by:
  1. Pierre, Gaelle, 2012. "Recent labor market performance in Vietnam through a gender lens," Policy Research Working Paper Series 6056, The World Bank.

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