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The impact of international and internal remittances on household welfare: evidence from Viet Nam

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Author Info

  • Nguyen Viet Cuong

    ()
    (Faculty of Trade and International Economics, National Economics University, Viet Nam)

Abstract

Using data from the Viet Nam household living standard surveys of 2002 and 2004, this paper measures the impact of international and internal remittances on the household welfare of remittance-receiving households. It finds that both the income and the consumption expenditures of the recipients increased as a result of international and internal remittances. The impact of remittances on non-food expenditures tended to be greater than the impact on food expenditures. For international remittances, the impact on income was much greater than the impact on consumption expenditures, meaning that a large proportion of international remittances were used for savings and investment. The impact of internal remittances on income was slightly greater than the impact on consumption expenditures. In other words, most of the internal remittances were used for consumption expenditures.

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Bibliographic Info

Article provided by United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in its journal Asia-Pacific Development Journal.

Volume (Year): 16 (2009)
Issue (Month): 1 (June)
Pages: 59-92

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Handle: RePEc:unt:jnapdj:v:16:y:2009:i:1:p:59-92

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Related research

Keywords: International remittances; internal remittances; household welfare; expenditure; income; Viet Nam;

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References

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  1. Glewwe, P., 1990. "Investigating The Determinants Of Household Welfare In Cote D'Ivoire," Papers 71, World Bank - Living Standards Measurement.
  2. 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.
  3. Taylor, J. Edward & Mora, Jorge & Adams, Richard H., Jr. & Lopez-Feldman, Alejandro, 2005. "Remittances, Inequality and Poverty: Evidence from Rural Mexico," Working Papers 60287, University of California, Davis, Department of Agricultural and Resource Economics.
  4. David McKenzie & Hillel Rapoport, 2011. "Can migration reduce educational attainment? Evidence from Mexico," Journal of Population Economics, Springer, vol. 24(4), pages 1331-1358, October.
  5. Alan de Brauw & Tomoko Harigaya, 2007. "Seasonal Migration and Improving Living Standards in Vietnam," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 430-447.
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Citations

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Cited by:
  1. Nguyen, Cuong & Nguyen, Hoa, 2013. "Do Internal and International Remittances Matter to Health, Education and Labor of Children? The Case of Vietnam," MPRA Paper 48672, University Library of Munich, Germany.
  2. Nguyen, Quang & Villeval, Marie Claire & Xu, Hui, 2012. "Trust and Trustworthiness under the Prospect Theory: A Field Experiment in Vietnam," IZA Discussion Papers 6851, Institute for the Study of Labor (IZA).
  3. Nguyen, Cuong Viet & Vu, Linh Hoang, 2014. "Should Parents Work Away from or Close to Home? The Effect of Temporary Parental Absence on Child Poverty and Children’s Time Use in Vietnam," MPRA Paper 52877, University Library of Munich, Germany.

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