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Do Foreign Remittances Matter to Poverty and Inequality? Evidence from Vietnam

Author

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  • Cuong Nguyen Viet

    (Wageningen University)

Abstract

Empirical findings on the impacts of international remittances on poverty and inequality have not been consistent. This paper uses fixed-effect regression to estimate the impacts of foreign remittances on income and consumption of remittances-receiving households, and subsequently investigate the impacts of foreign remittances on poverty and inequality in Vietnam. It is found that receiving foreign remittances has increased household income and consumption remarkably, but decreased poverty slightly for the remittance recipients. In addition, foreign remittances have increased inequality, albeit at a small magnitude.

Suggested Citation

  • Cuong Nguyen Viet, 2008. "Do Foreign Remittances Matter to Poverty and Inequality? Evidence from Vietnam," Economics Bulletin, AccessEcon, vol. 15(1), pages 1-11.
    • Handle: RePEc:ebl:ecbull:eb-07o10036
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    File URL: http://www.accessecon.com/pubs/EB/2008/Volume15/EB-07O10036A.pdf
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    Cited by:

    1. Mohamed El Hedi Arouri & Nguyen Viet Cuong, 2018. "On the Impact of Household Asset level and Inequality on Inter-governorate Migration: Evidence from Egypt," Working Papers 1182, Economic Research Forum, revised 12 Apr 2018.
    2. Nguyen Viet, Cuong, 2008. "Impacts of International and Internal Remittances on Household Welfare: Evidence from Viet Nam," MPRA Paper 25770, University Library of Munich, Germany.
    3. Adenutsi, Deodat E. & Ahortor, Christian R.K., 2010. "International remittances – the panacea for underdevelopment? A comparative panel data analysis of Sub-Saharan Africa and Latin America," MPRA Paper 29349, University Library of Munich, Germany.
    4. Nguyen, Cuong Viet & Nguyen, Hoa Quynh, 2015. "Do internal and international remittances matter to health, education and labor of children and adolescents? The case of Vietnam," Children and Youth Services Review, Elsevier, vol. 58(C), pages 28-34.
    5. Muhammad Shahbaz & Ijaz Rehman & Nurul Mahdzan, 2014. "Linkages between income inequality, international remittances and economic growth in Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1511-1535, May.
    6. Coon, Michael, 2012. "The Effect of Workers’ Remittances on Poverty in Mexico: A Regional Analysis," MPRA Paper 61388, University Library of Munich, Germany, revised 06 Oct 2014.
    7. 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.
    8. Mamoon, Dawood & Arshed, Noman & Raza, Sidra, 2015. "Investments in Health and Education Help Save Lives," MPRA Paper 82495, University Library of Munich, Germany.
    9. Nguyen, Cuong & van den Berg, Marrit & Lensink, Robert, 2009. "The Impact of International Remittances on Income, Work Efforts, Poverty and Inequality: Evidence from Vietnam," MPRA Paper 50313, University Library of Munich, Germany.
    10. Jessica Audrey Clayton & Thierry Warin, 2010. "A Note on Remittances in El Salvador and Ecuador: An Analysis of Household Survey Data," CIRANO Working Papers 2010s-13, CIRANO.
    11. Nguyen Viet Cuong & Vu Hoang Linh, 2018. "The Impact of Migration and Remittances on Household Welfare: Evidence from Vietnam," Journal of International Migration and Integration, Springer, vol. 19(4), pages 945-963, November.
    12. 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.
    13. Paolo Verme, 2010. "The Poverty Reduction Capacity of Private and Public Transfers in Transition," Working Papers 2010-16, Bar-Ilan University, Department of Economics.
    14. Nguyen Viet Cuong, 2009. "The impact of international and internal remittances on household welfare: evidence from Viet Nam," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 16(1), pages 59-92, June.
    15. Mallela, Keerti & Singh, Sunny Kumar & Srivastava, Archana, 2023. "Remittances, financial development, and income inequality: A panel quantile regression approach," International Economics, Elsevier, vol. 175(C), pages 171-186.
    16. Nguyen Viet Cuong & Daniel Mont, 2012. "Economic impacts of international migration and remittances on household welfare in Vietnam," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 11(2), pages 144-163, June.
    17. Adenutsi, Deodat E., 2011. "Do remittances alleviate poverty and income inequality in poor countries? Empirical evidence from sub-Saharan Africa," MPRA Paper 37130, University Library of Munich, Germany.
    18. Adenutsi, Deodat E., 2010. "Do international remittances promote human development in poor countries? Empirical evidence from Sub-Saharan Africa," MPRA Paper 29347, University Library of Munich, Germany.
    19. Paresh Kumar Sarma & Mohammad Jahangir Alam & Ismat Ara Begum, 2023. "International remittances’ impact on household welfare and food security in Bangladesh: evidence from cross-sectional data," SN Business & Economics, Springer, vol. 3(1), pages 1-17, January.

    More about this item

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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