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Estimating the impact of migration and remittances on agricultural technology

Author

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  • Michael A. Quinn

    (Bentley College, USA)

Abstract

The rapid growth of international migration and remittances has led to a wealth of research examining these trends. One of these lines of research attempts to determine the relationship between migration, remittances and the adoption of “Green Revolution” high yield variety (HYV) seeds. This literature proposes that migration and remittances may increase HYV use by reducing household risk and credit constraints. Given the large scale of both migration and remittances, getting an accurate measurement of these impacts is crucial to designing and implementing policies in rural areas. This paper examines the relationship between migration, remittances and agricultural technology. The credit and risk hypotheses are tested using data from the Mexican Migration Project. The main focus of the paper is examining the issue of endogeneity with respect to migration and remittances. When the probit approach is tested, evidence of endogeneity bias with respect to migration and remittances is found. The risk and credit hypotheses are then tested with two-stage and three-stage analyses, in order to address the problem of endogeneity. The results are found to be significantly different when methodologies are employed to deal with endogeneity; suggesting this is an issue that needs to be addressed. Overall, the results find some evidence to support both the credit and risk hypotheses; although the results for the risk hypothesis are more mixed.

Suggested Citation

  • Michael A. Quinn, 2009. "Estimating the impact of migration and remittances on agricultural technology," Journal of Developing Areas, Tennessee State University, College of Business, vol. 43(1), pages 199-216, September.
    • Handle: RePEc:jda:journl:vol.43:year:2009:issue1:pp:199-216
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    Citations

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    Cited by:

    1. Misgina Asmelash Redehegn & Dingqiang Sun & Aseres Mamo Eshete & Castro N Gichuki, 2019. "Development impacts of migration and remittances on migrant-sending communities: Evidence from Ethiopia," PLOS ONE, Public Library of Science, vol. 14(2), pages 1-20, February.
    2. Asghar ALI* & Muhammad Zahid SAEED* & Muhammad Ali IMRAN* & Khalid MUSHTAQ* & Abdul GHAFOOR**, 2018. "INVESTIGATION OF THE IMPACT OF FOREIGN REMITTANCE ON AGRICULTURAL DEVELOPMENT IN PAKISTAN: A Time Series Analysis," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 28(1), pages 131-146.
    3. Achille Augustin DIENDERE & Abdoul Hadirou YODA, 2023. "Understanding the effects of migrant remittances on agricultural production in West African countries," Economics Bulletin, AccessEcon, vol. 43(1), pages 398-412.
    4. Opondo, F. & Owuor, G., 2018. "The Effect of Cassava Commercialization On Household Income of Smallholder Farmers in Arid and Semi-arid Land (Asal), A Case of Kilifi County, Kenya," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276040, International Association of Agricultural Economists.
    5. Grabrucker, Katharina, 2021. "Effects of internal rural-urban migration on rural non-farm enterprises: Evidence from Thailand and Vietnam," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-85-21, University of Passau, Faculty of Business and Economics.
    6. Umair Shahzad, 2014. "Impact Assessment of Natural Disasters upon Economic Growth in Pakistan," 2nd International Conference on Energy, Regional Integration and Socio-Economic Development 7373, EcoMod.
    7. Ubaid Ali & Mazhar Mughal & Lionel de Boisdeffre, 2023. "Migrant remittances, agriculture investment and cropping patterns," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 899-920, September.

    More about this item

    Keywords

    Migration; Remittances; Agriculture; Investment; Credit; Risk;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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