IDEAS home Printed from https://ideas.repec.org/a/sae/revdev/v25y2020i1p5-29.html
   My bibliography  Save this article

Remittances, Investment and New Emigration Trends in Kerala

Author

Listed:
  • Justin Sunny
  • Jajati K. Parida
  • Mohammed Azurudeen

Abstract

This article reports a study of the interlinkages among remittance receipts, household-level investment and the changing emigration patterns in Kerala, using seven rounds of the Kerala Migration Survey conducted between 1998 and 2018. The major findings suggest that remittances improved households’ per capita income and changed their spending patterns. Households receiving remittance, on average, spare a relatively larger share of monthly income on the consumption of non-food durable goods. Moreover, receipts of remittance also enable the households to save, to invest more on assets, land and buildings, and to form human capital (through increased share of spending on education and health). Households which devote a large share of spending on education and health also report a relatively high share of skilled emigration to either Global North or Oceania regions, instead of the traditional low-skilled Gulf emigration. Hence, policies that help boost these new emigration trends are likely to sustain the growth of remittance inflows and the process of overall socio-economic development in Kerala.

Suggested Citation

  • Justin Sunny & Jajati K. Parida & Mohammed Azurudeen, 2020. "Remittances, Investment and New Emigration Trends in Kerala," Review of Development and Change, , vol. 25(1), pages 5-29, June.
    • Handle: RePEc:sae:revdev:v:25:y:2020:i:1:p:5-29
    DOI: 10.1177/0972266120932484
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0972266120932484
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0972266120932484?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Sanket Mohapatra & Dilip Ratha & Ani Silwal, 2011. "Outlook for Remittance Flows 2012-14 : Remittance Flows to Developing Countries Exceed $350 Billion in 2011," World Bank Publications - Reports 16182, The World Bank Group.
    3. Connel Fullenkamp & Mr. Thomas F. Cosimano & Michael T. Gapen & Mr. Ralph Chami & Mr. Peter J Montiel & Mr. Adolfo Barajas, 2008. "Macroeconomic Consequences of Remittances," IMF Occasional Papers 2008/001, International Monetary Fund.
    4. Dilip Ratha & Sanket Mohapatra & Caglar Ozden & Sonia Plaza & William Shaw & Abebe Shimeles, 2011. "Leveraging Migration for Africa : Remittances, Skills, and Investments [Optimisation du phénomène migratoire pour l’Afrique : Envois de fonds, compétences et investissements]," World Bank Publications - Books, The World Bank Group, number 2300, December.
    5. Dean Yang, 2008. "International Migration, Remittances and Household Investment: Evidence from Philippine Migrants’ Exchange Rate Shocks," Economic Journal, Royal Economic Society, vol. 118(528), pages 591-630, April.
    6. K.P. Kannan & K.S. Hari, 2002. "Kerala's Gulf connection: Emigration, remittances and their macroeconomic impact 1972-2000," Centre for Development Studies, Trivendrum Working Papers 328, Centre for Development Studies, Trivendrum, India.
    7. Ralph Chami & Connel Fullenkamp & Samir Jahjah, 2005. "Are Immigrant Remittance Flows a Source of Capital for Development?," IMF Staff Papers, Palgrave Macmillan, vol. 52(1), pages 55-81, April.
    8. Adams, Richard H, Jr, 1998. "Remittances, Investment, and Rural Asset Accumulation in Pakistan," Economic Development and Cultural Change, University of Chicago Press, vol. 47(1), pages 155-173, October.
    9. Azizi, SeyedSoroosh, 2018. "The impacts of workers' remittances on human capital and labor supply in developing countries," Economic Modelling, Elsevier, vol. 75(C), pages 377-396.
    10. Adams Jr., Richard H. & Cuecuecha, Alfredo, 2010. "Remittances, Household Expenditure and Investment in Guatemala," World Development, Elsevier, vol. 38(11), pages 1626-1641, November.
    11. Acosta, Pablo & Fajnzylber, Pablo & Lopez, J. Humberto, 2007. "The impact of remittances on poverty and human capital : evidence from Latin American household surveys," Policy Research Working Paper Series 4247, The World Bank.
    12. S. Irudaya Rajan & K.C. Zachariah, 2019. "Emigration and Remittances: New Evidences from the Kerala Migration Survey 2018," Working Papers id:12989, eSocialSciences.
    13. Adams, Richard H. & Cuecuecha, Alfredo, 2013. "The Impact of Remittances on Investment and Poverty in Ghana," World Development, Elsevier, vol. 50(C), pages 24-40.
    14. Gyan Pradhan & Mukti Upadhyay & Kamal Upadhyaya, 2008. "Remittances and economic growth in developing countries," The European Journal of Development Research, Taylor and Francis Journals, vol. 20(3), pages 497-506.
    15. Richard H. Adams, 2006. "International Remittances and the Household: Analysis and Review of Global Evidence," Journal of African Economies, Centre for the Study of African Economies, vol. 15(2), pages 396-425, December.
    16. Acosta, Pablo & Calderon, Cesar & Fajnzylber, Pablo & Lopez, Humberto, 2008. "What is the Impact of International Remittances on Poverty and Inequality in Latin America?," World Development, Elsevier, vol. 36(1), pages 89-114, January.
    17. K. Pushpangadan, 2003. "Remittances, consumption and economic growth in Kerala: 1980-2000," Centre for Development Studies, Trivendrum Working Papers 343, Centre for Development Studies, Trivendrum, India.
    18. Chinmay, Tumbe, 2011. "Remittances in India: Facts and Issues," MPRA Paper 29983, University Library of Munich, Germany.
    19. K.C. Zachariah & B.A. Prakash & S. Irudaya Rajan, 2002. "Gulf migration study: Employment, wages and working conditions of Kerala emigrants in the United Arab Emirates," Centre for Development Studies, Trivendrum Working Papers 326, Centre for Development Studies, Trivendrum, India.
    20. Hrushikesh Mallick, 2008. "Do remittances impact the economy? Some empirical evidences from a developing economy," Centre for Development Studies, Trivendrum Working Papers 407, Centre for Development Studies, Trivendrum, India.
    21. Jorge Durand & William Kandel & Emilio Parrado & Douglas Massey, 1996. "International migration and development in mexican communities," Demography, Springer;Population Association of America (PAA), vol. 33(2), pages 249-264, May.
    22. Kankesu Jayanthakumaran & Reetu Verma & Guanghua Wan & Edgar Wilson (ed.), 2019. "Internal Migration, Urbanization and Poverty in Asia: Dynamics and Interrelationships," Springer Books, Springer, number 978-981-13-1537-4, September.
    23. Jajati Keshari Parida & S Madheswaran, 2011. "Determinants of Migration and Remittance in India: Empirical Evidence," Working Papers 272, Institute for Social and Economic Change, Bangalore.
    24. Richard Adams, 2011. "Evaluating the Economic Impact of International Remittances On Developing Countries Using Household Surveys: A Literature Review," Journal of Development Studies, Taylor & Francis Journals, vol. 47(6), pages 809-828.
    25. KC.Zachariah & S.Irudaya Rajan, 2007. "Economic and social dynamics of migration in Kerala, 1999-2004: Analysis of panel data," Centre for Development Studies, Trivendrum Working Papers 384, Centre for Development Studies, Trivendrum, India.
    26. K.C. Zachariah & S. Irudaya Rajan, 2007. "Migration remittances and employment short-term trends and longterm implications," Centre for Development Studies, Trivendrum Working Papers 395, Centre for Development Studies, Trivendrum, India.
    27. Salas, Vania B., 2014. "International Remittances and Human Capital Formation," World Development, Elsevier, vol. 59(C), pages 224-237.
    28. Alejandra Cox Edwards & Manuelita Ureta, 2003. "International Migration, Remittances, and Schooling: Evidence from El Salvador," NBER Working Papers 9766, National Bureau of Economic Research, Inc.
    29. S. Irudaya Rajan & D. Narayana & Ratnakar Adhikari & Puspa Sharma & Paras Kharel, 2012. "The financial crisis in the Gulf and its impact on South Asian migration and remittances," Regional Economic Integration: Challenges for South Asia during turbulent times (Edited volume), in: Saman Kelegama (ed.), Regional Economic Integration : Challenges for South Asia during turbulent times (Edited volume), edition 1, volume 1, chapter 9, pages 117-186, South Asia Watch on Trade, Economics and Environment.
    30. Edwards, Alejandra Cox & Ureta, Manuelita, 2003. "International migration, remittances, and schooling: evidence from El Salvador," Journal of Development Economics, Elsevier, vol. 72(2), pages 429-461, December.
    31. Parida, Jajati K. & Mohanty, Sanjay K. & Raman, K. Ravi, 2015. "Remittances, Household Expenditure and Investment in Rural India: Evidence from NSS data," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 50(1), pages 79-104.
    32. Adriana Castaldo & Barry Reilly, 2007. "Do Migrant Remittances Affect the Consumption Patterns of Albanian Households?," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 5(1), pages 25-44.
    33. Zachariah KC, 2007. "Economic and Social Dynamics of Migration in Kerala, 1999-2004 Analysis of Panel Data," Working Papers id:1087, eSocialSciences.
    34. K.C. Zachariah & S. Irudaya Rajan, 2004. "Gulf revisited: Economic consequences of emigration from Kerala, emigration and unemployment," Centre for Development Studies, Trivendrum Working Papers 363, Centre for Development Studies, Trivendrum, India.
    35. Puja Guha, 2013. "Measuring International Remittances in India: Concepts and Empirics," Working Papers id:5487, eSocialSciences.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Khan, Muhammad Tariq Iqbal & Anwar, Sofia, 2022. "Natural disasters and foreign exchange reserves: The role of renewable energy and human capital," Renewable Energy, Elsevier, vol. 192(C), pages 838-848.
    2. K. P. Kannan & K. S. Hari, 2020. "Revisiting Kerala’s Gulf Connection: Half a Century of Emigration, Remittances and Their Macroeconomic Impact, 1972–2020," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(4), pages 941-967, December.
    3. Jajati K. Parida & Merry Elizabeth John & Justin Sunny, 2020. "Construction labour migrants and wage inequality in Kerala," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 22(2), pages 414-442, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ma, Yechi & Chen, Zhiguo & Shinwari, Riazullah & Khan, Zeeshan, 2021. "Financialization, globalization, and Dutch disease: Is Dutch disease exist for resources rich countries?," Resources Policy, Elsevier, vol. 72(C).
    2. Joseph B. Ajefu & Joseph O. Ogebe, 2021. "The effects of international remittances on expenditure patterns of the left‐behind households in Sub‐Saharan Africa," Review of Development Economics, Wiley Blackwell, vol. 25(1), pages 405-429, February.
    3. Randazzo, Teresa & Pavanello, Filippo & De Cian, Enrica, 2023. "Adaptation to climate change: Air-conditioning and the role of remittances," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    4. Cornelia Serena, PASCA, 2016. "Monetary Remittance - Romania Case Study," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 1(3), pages 50-59.
    5. Bhupesh Gopal Chintamani & Lalitagauri Kulkarni, 2023. "Determinants and Effects of International Remittances: Evidence from Ratnagiri District of Rural Maharashtra," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(2), pages 617-637, June.
    6. Mora-Rivera, Jorge & van Gameren, Edwin, 2021. "The impact of remittances on food insecurity: Evidence from Mexico," World Development, Elsevier, vol. 140(C).
    7. Kashif Imran & Evelyn S. Devadason & Cheong Kee Cheok, 2019. "Developmental Impacts of Remittances on Migrant-Sending Households: Micro-Level Evidence from Punjab, Pakistan," Journal of South Asian Development, , vol. 14(3), pages 338-366, December.
    8. Filiz Garip, 2014. "The Impact of Migration and Remittances on Wealth Accumulation and Distribution in Rural Thailand," Demography, Springer;Population Association of America (PAA), vol. 51(2), pages 673-698, April.
    9. Haruna, Issahaku & Harvey, Simon K. & Abor, Joshua Y., 2016. "Does development finance pose an additional risk to monetary policy?," MPRA Paper 101637, University Library of Munich, Germany, revised 10 Jul 2016.
    10. Jajati K. Parida & Merry Elizabeth John & Justin Sunny, 2020. "Construction labour migrants and wage inequality in Kerala," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 22(2), pages 414-442, December.
    11. Bharati Basu & Irudaya Rajan, 2018. "Investment Expenditure Behavior of Remittance Receiving Households: An Analysis Using Reserve Bank of India Data," Migration Letters, Migration Letters, vol. 15(3), pages 303-320, July.
    12. Chuhong Wang & Xingfei Liu & Zizhong Yan, 2021. "Temporary versus permanent migration: The impact on expenditure patterns of households left behind," Review of Economics of the Household, Springer, vol. 19(3), pages 873-911, September.
    13. Christian EBEKE, 2010. "Transferts des migrants, ouverture sur l'extérieur et dépenses publiques dans les pays en développement," Working Papers 201011, CERDI.
    14. Imtiaz Arif & Syed Ali Raza & Anita Friemann & Muhammad Tahir Suleman, 2019. "The Role of Remittances in the Development of Higher Education: Evidence from Top Remittance Receiving Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(3), pages 1233-1243, February.
    15. Randazzo, Teresa & Piracha, Matloob, 2014. "Remittances and Household Expenditure Behaviour in Senegal," IZA Discussion Papers 8106, Institute of Labor Economics (IZA).
    16. A. Nurul Hossain & Syed Hasanuzzaman, 2013. "Remittances and investment nexus in Bangladesh: an ARDL bounds testing approach," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 60(4), pages 387-407, December.
    17. Chrysost Bangake & Jude Eggoh, 2020. "Financial Development Thresholds and the Remittances-Growth Nexus," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 18(2), pages 425-445, June.
    18. Liliana Simionescu & Dalina Dumitrescu, 2017. "Migrants Remittances Influence on Fiscal Sustainability in Dependent Economies," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(46), pages 640-640, August.
    19. Michael Clemens and Timothy N. Ogden, 2014. "Migration as a Strategy for Household Finance: A Research Agenda on Remittances, Payments, and Development- Working Paper 354," Working Papers 354, Center for Global Development.
    20. Chengjuan Xia & Md. Qamruzzaman & Anass Hamadelneel Adow, 2022. "An Asymmetric Nexus: Remittance-Led Human Capital Development in the Top 10 Remittance-Receiving Countries: Are FDI and Gross Capital Formation Critical for a Road to Sustainability?," Sustainability, MDPI, vol. 14(6), pages 1-24, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:revdev:v:25:y:2020:i:1:p:5-29. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.