The poverty effect of remittance flows: evidence from Georgia
AbstractThe main purpose of this study is to analyse the poverty effects of emigration and inward remittance flows through direct and indirect channels within the context of a standard computable general equilibrium (CGE) model. For that purpose we use a novel approach in modeling a social accounting matrix (SAM)-based CGE model by combining an original data set containing rich, highly-disaggregated household budget suveys with detailed macro-level data for Georgia. A distinctive contribution of this study is the attention paid to regional differences in terms of market access and transaction costs, in addition to households' factor endowments and consumption patterns. The main questions of interest are whether and to what extent remittance flows contribute to the production and consumption pattern of the poor. Two aspects of poverty reduction are emphasised: (1) the impact of remittances on aggregate and sectoral economic growth and (2) the impact of remittances on poor households, their production and consumption patterns across regions. The study concludes that, while having a strong macroeconomic growth effect at the aggregate level, emigration and inward remittance flows do not affect all sectors and residents symmetrically. Moreover, they have a rather limited impact in terms of poverty and income inequality.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Post-Communist Economies.
Volume (Year): 21 (2009)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.tandfonline.com/CPCE20
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.