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On the Role of Urban-to-Rural Remittances in Rural Development

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  • Stark, Oded

Abstract

In this paper I present a new approach to rural-to-urban migration in developing countries. This approach sheds new light on the role of urban-to-rural remittances in bringing about technological change in the agricultural sector of these countries. At the core of the new approach is a utility maximizing family that by means of the migration of a family member bypasses the constraints on technological change imposed by lack of credit and risk. The paper discusses how to bring the new approach to the data.

Suggested Citation

  • Stark, Oded, 1980. "On the Role of Urban-to-Rural Remittances in Rural Development," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 16(3), pages 369-374.
    • Handle: RePEc:zbw:espost:234132
    DOI: 10.1080/00220388008421764
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    References listed on IDEAS

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    1. Griffin, Keith, 1976. "On the emigration of the peasantry," World Development, Elsevier, vol. 4(5), pages 353-361, May.
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    Citations

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    Cited by:

    1. Bauer, Thomas & Gang, Ira, 1998. "Temporary Migrants from Egypt: How Long Do They Stay Abroad?," CEPR Discussion Papers 2003, C.E.P.R. Discussion Papers.
    2. de Haas, Hein, 2009. "Mobility and Human Development," MPRA Paper 19176, University Library of Munich, Germany.
    3. Mochebelele, Motsamai T. & Winter-Nelson, Alex, 2000. "Migrant Labor and Farm Technical Efficiency in Lesotho," World Development, Elsevier, vol. 28(1), pages 143-153, January.
    4. Mamgain, Rajendra P., 2004. "Employment, migration and livelihoods in the Hill Economy of Uttaranchal," MPRA Paper 32303, University Library of Munich, Germany.
    5. Ira N. Gang & Thomas Bauer, 2000. "Return Migrants From Egypt: How Long Did They Stay Abroad?," Departmental Working Papers 199811, Rutgers University, Department of Economics.
    6. Puja Guha, 2014. "Economics of Migration and Remittances: A Review Article," Working Papers id:5618, eSocialSciences.
    7. Adams, Richard H., Jr., 1991. "The effects of international remittances on poverty, inequality, and development in rural Egypt:," Research reports 86, International Food Policy Research Institute (IFPRI).
    8. Woodruff, Christopher & Zenteno, Rene, 2007. "Migration networks and microenterprises in Mexico," Journal of Development Economics, Elsevier, vol. 82(2), pages 509-528, March.
    9. Hein de Haas, 2009. "Mobility and Human Development," Human Development Research Papers (2009 to present) HDRP-2009-01, Human Development Report Office (HDRO), United Nations Development Programme (UNDP), revised Apr 2009.
    10. Li, Xin & Sun, Xiaoyue, 2020. "Child development in rural China: Does parental migration matter?," Children and Youth Services Review, Elsevier, vol. 119(C).
    11. Sanhita Sucharita, 2020. "Socio-economic Determinants of Temporary Labour Migration in Western Jharkhand, India," Millennial Asia, , vol. 11(2), pages 226-251, August.
    12. Massimiliano Calì & Carlo Menon, 2013. "Does Urbanization Affect Rural Poverty? Evidence from Indian Districts," The World Bank Economic Review, World Bank, vol. 27(2), pages 171-201.
    13. Ghorpade, Yashodhan, 2017. "Extending a Lifeline or Cutting Losses? The Effects of Conflict on Household Receipts of Remittances in Pakistan," World Development, Elsevier, vol. 99(C), pages 230-252.
    14. Taylor, J. Edward & Zabin, Carol & Eckhoff, Kay, 1999. "Migration and rural development in El Salvador: a micro economywide perspective10," The North American Journal of Economics and Finance, Elsevier, vol. 10(1), pages 91-114.
    15. Fransen, Sonja & Mazzucato, Valentina, 2014. "Remittances and Household Wealth after Conflict: A Case Study on Urban Burundi," World Development, Elsevier, vol. 60(C), pages 57-68.

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    More about this item

    Keywords

    Rural-to-urban migration; Urban-to-rural remittances; Utility maximizing family; Rural-to-urban remittances; Agricultural development; Technological change in agriculture; Credit constraint; Risk constraint; Credit and insurance markets; Fungibility of urban-to rural remittances; Inequality of the rural income distribution; Usage and interpretation of existing evidence;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • D19 - Microeconomics - - Household Behavior - - - Other
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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