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Remittances and Household Expenditure in Rural Nigeria

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  • Olowa, Olatomide W.
  • Awoyemi, Timothy T.

Abstract

This paper examines the relationship between remittances and household expenditures in rural Nigeria by using the 2004 living standard survey to analyse how the receipt of domestic remittances (from within Nigeria) and foreign remittances (from abroad) affects the marginal spending behaviour of households on various consumption and investment goods. Expenditures were categorized into six namely food, education, housing, health, consumer goods and others. Results show that households receiving remittances spend less at the margin on consumption of food, consumer goods and durables than do households receiving no remittances. The analysis further shows that a large amount of remittance money goes into education. At the margin, households receiving domestic and foreign remittances spend 45 and 58 percent more, respectively, on education than do households with no remittances. Like other studies, this paper finds that remittance-receiving households spend more at the margin on housing.

Suggested Citation

  • Olowa, Olatomide W. & Awoyemi, Timothy T., 2011. "Remittances and Household Expenditure in Rural Nigeria," Journal of Rural Economics and Development, University of Ibadan, Department of Agricultural Economics, vol. 20.
  • Handle: RePEc:ags:ngjred:206866
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    File URL: http://purl.umn.edu/206866
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    References listed on IDEAS

    as
    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 901-918, October.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Remittances; Household expenditures; Consumption and investment goods; Marginal spending; Rural Nigeria; Agricultural Finance; Community/Rural/Urban Development; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; F36; F15; G11; G12.;

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F15 - International Economics - - Trade - - - Economic Integration
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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