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Do remittances support consumption during crisis? Evidence from Kosovo

Author

Listed:
  • Laetitia Duval

    (Imperial College London)

  • Francois Charles Wolff

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes, INED - Institut national d'études démographiques)

Abstract

This paper focuses on the effect of remittances on per capita consumption over time in a context of conflict , war-to-peace transition and crisis. We use two household surveys from Kosovo with unique timing , one collected immediately after the civil war in 2000 and the other during the economic crisis in 2010. This territory , in which the tension among ethnic groups is the focus of international concern , is one of the top remittance-­‐receiving countries in the world. We examine the effect of remittances not only at the average level of consumption , but also at various parts of the distribution of consumption using quantile regressions. We find that remittances alleviate poverty by enhancing the consumption level of the most vulnerable households , and the positive effect of remittances on consumption has remained constant between 2000 and 2010. This result may be connected with the resilience of remittances.

Suggested Citation

  • Laetitia Duval & Francois Charles Wolff, 2016. "Do remittances support consumption during crisis? Evidence from Kosovo," Post-Print hal-01278930, HAL.
    • Handle: RePEc:hal:journl:hal-01278930
    DOI: 10.1080/13600818.2016.1156080
    Note: View the original document on HAL open archive server: https://hal.science/hal-01278930
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