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Remittances, Poverty, Inequality and Welfare: Evidence from the Central Plateau of Burkina Faso

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  • F. Wouterse

Abstract

This paper applies Gini and concentration coefficient decomposition as well as the Foster-Greer-Thorbecke poverty index and the Stark-Yitzhaki welfare index to new data from four villages in Burkina Faso, to compare the marginal effects of remittances from intercontinental and intra-African migration on inequality, poverty and social welfare. Evidence is found that intra-African remittances reduce inequality while intercontinental remittances have the opposite effect. Also, it is found that although remittances from intercontinental migration are associated with much lower incidence, depth and severity of poverty, the marginal impact of remittances from this form of migration on social welfare is limited because recipients do not include the rural poor.

Suggested Citation

  • F. Wouterse, 2010. "Remittances, Poverty, Inequality and Welfare: Evidence from the Central Plateau of Burkina Faso," Journal of Development Studies, Taylor & Francis Journals, vol. 46(4), pages 771-789.
  • Handle: RePEc:taf:jdevst:v:46:y:2010:i:4:p:771-789
    DOI: 10.1080/00220380903019461
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    Cited by:

    1. Bang, James T. & Mitra, Aniruddha & Wunnava, Phanindra V., 2018. "Hollowing Out the Middle? Remittances and Income Inequality in Nigeria," IZA Discussion Papers 11438, Institute of Labor Economics (IZA).
    2. Michael Weber, 2018. "Burkina Faso Jobs Diagnostic," World Bank Other Operational Studies 31033, The World Bank.
    3. 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.
    4. Alexandra Tapsoba & Pascale Combes Motel & Jean-Louis Combes, 2019. "Remittances, food security and climate variability: The case of Burkina Faso," Working Papers halshs-02364775, HAL.
    5. Chakra P. ACHARYA & Roberto LEON-GONZALEZ, 2013. "The Impact of Remittance on Poverty and Inequality: A Micro-Simulation Study for Nepal," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 3(9), pages 1061-1080, September.
    6. Nigussie Abadi & Ataklti Techane & Girmay Tesfay & Daniel Maxwell & Bapu Vaitla, 2018. "The impact of remittances on household food security: A micro perspective from Tigray, Ethiopia," WIDER Working Paper Series 040, World Institute for Development Economic Research (UNU-WIDER).
    7. Thanh P. Bui & Katsushi S. Imai, 2019. "Determinants of Rural-Urban Inequality in Vietnam: Detailed Decomposition Analyses Based on Unconditional Quantile Regressions," Journal of Development Studies, Taylor & Francis Journals, vol. 55(12), pages 2610-2625, December.
    8. Syden Mishi, 2014. "Remittances and Sustainability of Family Livelihoods: Evidence from Zimbabwe," Journal of Economics and Behavioral Studies, AMH International, vol. 6(12), pages 958-973.
    9. Majeed, Muhammad Tariq, 2015. "Distributional Consequences of Remittances: Evidence from Sixty-Five Developing Countries," MPRA Paper 88673, University Library of Munich, Germany, revised 2016.
    10. Yawo A. Noglo & Namponndi Kader Ouedraogo, 2020. "Using Dagum's Gini decomposition to assess households' asset-based gap in the regions of Burkina Faso," Economics Bulletin, AccessEcon, vol. 40(3), pages 2241-2253.
    11. John C. Anyanwu, 2016. "Empirical Analysis of the Main Drivers of Income Inequality in Southern Africa," Annals of Economics and Finance, Society for AEF, vol. 17(2), pages 337-364, November.
    12. Bang, James T. & Mitra, Aniruddha & Wunnava, Phanindra V., 2016. "Do remittances improve income inequality? An instrumental variable quantile analysis of the Kenyan case," Economic Modelling, Elsevier, vol. 58(C), pages 394-402.
    13. Nigussie Abadi & Ataklti Techane & Girmay Tesfay & Daniel Maxwell & Bapu Vaitla, 2018. "The impact of remittances on household food security: A micro perspective from Tigray, Ethiopia," WIDER Working Paper Series wp-2018-40, World Institute for Development Economic Research (UNU-WIDER).

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