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Impacts of International Migration and Remittances on Source Country Household Incomes in Small Island States; Fiji and Tonga

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Author Info

  • Richard P.C. Brown

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Gareth Leeves

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

Abstract

We use original 2005 survey data from Fiji and Tonga on remittances and household income to estimate the combined impact of migration and remittances on the composition of household income. A two-stage methodology is followed. A variable for the predicted number of migrants in each household is generated to control for selectivity in migration. This variable is then used in a 3SLS remittances and income equation system. In neither country do we observe significant impacts on agricultural cash income, but, in relation to other income sources, including subsistence agriculture, wages and non-agricultural business activities, some significant and different effects are found, both positive and negative. These findings suggest that the duration and intensity of remittance-driven migration, and the structure of economic activity within a community are important in understanding the influences of migration and remittances on household resource allocation and production decisions and on the community’s economic transformation.

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Bibliographic Info

Paper provided by Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA) in its series Working Papers with number 07-13.

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Length: 28 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:fao:wpaper:0713

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Related research

Keywords: Migration; remittances; agricultural and non-agricultural income sources; Fiji; Tonga.;

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References

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  1. Hendrik P. van Dalen & George Groenewold & Jeanette J. Schoorl, 2003. "Out of Africa: What drives the Pressure to emigrate?," Tinbergen Institute Discussion Papers 03-059/3, Tinbergen Institute.
  2. Taylor, J. Edward, 1992. "Remittances and inequality reconsidered: Direct, indirect, and intertemporal effects," Journal of Policy Modeling, Elsevier, vol. 14(2), pages 187-208, April.
  3. Brown, Richard P. C., 1997. "Estimating remittance functions for Pacific Island Migrants," World Development, Elsevier, vol. 25(4), pages 613-626, January.
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Cited by:
  1. John Gibson & David McKenzie & Steven Stillman, 2011. "The Impacts of International Migration on Remaining Household Members: Omnibus Results from a Migration Lottery Program," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1297-1318, November.
  2. Bryan, Gharad & Chowdhury, Shyamal & Mobarak, Ahmed Mushfiq, 2012. "Seasonal Migration and Risk Aversion," CEPR Discussion Papers 8739, C.E.P.R. Discussion Papers.
  3. David McKenzie & John Gibson & Steven Stillman, 2007. "Moving to Opportunity, Leaving Behind What? Evaluating the Initial Effects of a Migration Policy on Incomes and Poverty in Source Areas," Working Papers in Economics 07/23, University of Waikato, Department of Economics.

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