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Impacts of International Migration and Remittances

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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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Paper provided by School of Economics, University of Queensland, Australia in its series Discussion Papers Series with number 347.

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Date of creation: 2007
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Handle: RePEc:qld:uq2004:347

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Cited by:
  1. Gibson, John & McKenzie, David & Stillman, Steven, 2009. "The Impacts of International Migration on Remaining Household Members: Omnibus Results from a Migration Lottery Program," IZA Discussion Papers 4375, Institute for the Study of Labor (IZA).
  2. 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," New Zealand Economic Papers, Taylor & Francis Journals, Taylor & Francis Journals, vol. 41(2), pages 197-223.
  3. Jayaraman, T. K. & Choong, Chee-Keong & Kumar, Ronald, 2011. "Role of Remittances in Economic Development: An Empirical Study of World’s Two Most Remittances Dependent Pacific Island Economies," MPRA Paper 33197, University Library of Munich, Germany.
  4. Kumar, Ronald R., 2010. "Impact of trade openness, remittances, capital inflows & financial development on income in Vanuatu," MPRA Paper 33221, University Library of Munich, Germany.
  5. Jadotte, Evans, 2009. "International Migration, Remittances and Labour Supply: The Case of the Republic of Haiti," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  6. David McKenzie, 2012. "Learning about migration through experiments," CReAM Discussion Paper Series 1207, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  7. Gharad Bryan & Shyamal Chowdhury & A. Mushfiq Mobarak, 2011. "Seasonal Migration and Risk Aversion," Working Papers id:4650, eSocialSciences.
  8. Kumar, Ronald R., 2011. "Role of Financial and Technology Inclusion, Remittances and Exports vis-à-vis growth: A study of Nepal," MPRA Paper 38850, University Library of Munich, Germany, revised 17 May 2012.
  9. Ibrahim Sirkeci & Jeffrey H. Cohen & Dilip Ratha, 2012. "Migration and Remittances during the Global Financial Crisis and Beyond," World Bank Publications, The World Bank, number 13092, August.
  10. Kumar, Ronald/R, 2011. "Role of Trade, Aid, Remittances and Financial Development in Pakistan," MPRA Paper 38871, University Library of Munich, Germany.
  11. Gharad Bryan & Shyamal Chowdhury & Ahmed Mushfiq Mobarak, 2014. "Under-investment in a Profitable Technology: The Case of Seasonal Migration in Bangladesh," NBER Working Papers 20172, National Bureau of Economic Research, Inc.

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