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Determinants and Impacts of International Remittances on Household Welfare in Vietnam

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  • Pfau, Wade Donald

Abstract

Remittances can potentially help to promote economic development by providing a mechanism to share risks, reduce poverty, and improve equality. However, the overall impacts of remittances are uncertain from the view of economic theory as different mechanisms lead to opposite impacts. Since the 1990s, Vietnam has experienced a dramatic growth in remittance flows from abroad. Vietnam is a unique case for study, as economic motives historically played a smaller role in outward migration. Fortunately, household survey data is available for this time period, allowing for a detailed analysis of the impacts of international remittances on Vietnam. Specifically, we examine the characteristics of recipients and the impacts of international remittances on economic inequality and poverty. We conclude that international remittances are helping to improve equality. As such, new development policies must also account for potential impacts on remittance flows.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 19038.

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Date of creation: Aug 2008
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Handle: RePEc:pra:mprapa:19038

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Keywords: Vietnam; remittances;

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References

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  1. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-18, October.
  2. Adams, Richard Jr. & Page, John, 2005. "Do international migration and remittances reduce poverty in developing countries?," World Development, Elsevier, vol. 33(10), pages 1645-1669, October.
  3. Richard H. Adams, 2006. "International Remittances and the Household: Analysis and Review of Global Evidence," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(2), pages 396-425, December.
  4. Stark, Oded & Taylor, J Edward & Yitzhaki, Shlomo, 1986. "Remittances and Inequality," Economic Journal, Royal Economic Society, vol. 96(383), pages 722-40, September.
  5. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
  6. 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).
  7. Giang, Thanh Long & Pfau, Wade Donald, 2007. "The Elderly Population in Vietnam during Economic Transformation: An Overview," MPRA Paper 24948, University Library of Munich, Germany.
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Cited by:
  1. Pfau, Wade Donald & Giang, Thanh Long, 2009. "Remittances, Living Arrangements, and the Welfare of the Elderly," MPRA Paper 19121, University Library of Munich, Germany.
  2. Chakra P. Acharya & Roberto Leon-Gonzalez, 2012. "The Impact of Remittance on Poverty and Inequality: A Micro-Simulation Study for Nepal," GRIPS Discussion Papers 11-26, National Graduate Institute for Policy Studies.
  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.
  4. 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.

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