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Remittances and Household Expenditure Behaviour in Senegal

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  • Randazzo, Teresa

    ()
    (University of Kent)

  • Piracha, Matloob

    ()
    (University of Kent)

Abstract

This paper analyses the impact of remittances on household expenditure behaviour in Senegal. We use propensity score matching and OLS methods to assess the average impact of remittances on several household budget shares. Our results show a productive use of international remittances in Senegal. However, the impact of remittances disappears when the marginal spending behaviour is considered, i.e., households do not show a different consumption pattern with respect to their remittance status. Therefore, in the decision on how to allocate expenditure, remittances are treated just as any other source of income.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 8106.

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Length: 39 pages
Date of creation: Apr 2014
Date of revision:
Handle: RePEc:iza:izadps:dp8106

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Keywords: remittances; household expenditure; Senegal;

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  1. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
  2. Cristina Cattaneo, 2012. "Migrants’ international transfers and educational expenditure," The Economics of Transition, The European Bank for Reconstruction and Development, The European Bank for Reconstruction and Development, vol. 20(1), pages 163-193, 01.
  3. German A. Zarate-Hoyos, 2004. "Consumption and Remittances in Migrant Households: Toward a Productive Use of Remittances," Contemporary Economic Policy, Western Economic Association International, vol. 22(4), pages 555-565, October.
  4. Edwards, Alejandra Cox & Ureta, Manuelita, 2003. "International migration, remittances, and schooling: evidence from El Salvador," Journal of Development Economics, Elsevier, Elsevier, vol. 72(2), pages 429-461, December.
  5. Samir Jahjah & Ralph Chami & Connel Fullenkamp, 2003. "Are Immigrant Remittance Flows a Source of Capital for Development," IMF Working Papers 03/189, International Monetary Fund.
  6. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 22(1), pages 31-72, 02.
  7. Aubrey D. Tabuga, 2007. "International Remittances and Household Expenditures : The Philippine Case," Development Economics Working Papers 22698, East Asian Bureau of Economic Research.
  8. Alejandra Cox Edwards & Manuelita Ureta, 2003. "International Migration, Remittances, and Schooling: Evidence from El Salvador," NBER Working Papers 9766, National Bureau of Economic Research, Inc.
  9. Richard Adams, 2011. "Evaluating the Economic Impact of International Remittances On Developing Countries Using Household Surveys: A Literature Review," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 47(6), pages 809-828.
  10. Sanket Mohapatra & Dilip Ratha, 2011. "Remittance Markets in Africa," World Bank Publications, The World Bank, number 2292, August.
  11. Paresh Kumar Narayan & Seema Narayan & Sagarika Mishra, 2011. "Do Remittances Induce Inflation? Fresh Evidence from Developing Countries," Southern Economic Journal, Southern Economic Association, vol. 77(4), pages 914-933, April.
  12. Tabuga, Aubrey D., 2007. "International Remittances and Household Expenditures: the Philippine Case," Discussion Papers DP 2007-18, Philippine Institute for Development Studies.
  13. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, StataCorp LP, vol. 2(4), pages 358-377, November.
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