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Moving Forward, Looking Back: the Impact of Migration and Remittances on Assets, Consumption, and Credit Constraints in the Rural Philippines

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  • Agnes Quisumbing
  • Scott McNiven

Abstract

This paper investigates the impact of migration and remittances on asset holdings, consumption expenditures, and credit constraint status of households in origin communities, using a unique longitudinal data set from Bukidnon, Philippines. Taking into account the endogeneity of the number of migrants and remittances received, a larger number of migrant children reduces the values of nonland assets and total expenditures per adult equivalent. However, remittances have a positive impact on housing, consumer durables, nonland assets, total expenditures (per adult equivalent), and educational expenditures, enabling asset accumulation and investment in human capital. Neither migration nor remittances affects current credit constraint status.

Suggested Citation

  • Agnes Quisumbing & Scott McNiven, 2010. "Moving Forward, Looking Back: the Impact of Migration and Remittances on Assets, Consumption, and Credit Constraints in the Rural Philippines," Journal of Development Studies, Taylor & Francis Journals, vol. 46(1), pages 91-113.
    • Handle: RePEc:taf:jdevst:v:46:y:2010:i:1:p:91-113
    DOI: 10.1080/00220380903197960
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    1. Barham, Bradford L. & Boucher, Stephen & Carter, Michael R., 1996. "Credit constraints, credit unions, and small-scale producers in Guatemala," World Development, Elsevier, vol. 24(5), pages 793-806, May.
    2. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
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