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The impact of international and internal remittances on household welfare: evidence from Viet Nam

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  • Nguyen Viet Cuong

    () (Faculty of Trade and International Economics, National Economics University, Viet Nam)

Abstract

Using data from the Viet Nam household living standard surveys of 2002 and 2004, this paper measures the impact of international and internal remittances on the household welfare of remittance-receiving households. It finds that both the income and the consumption expenditures of the recipients increased as a result of international and internal remittances. The impact of remittances on non-food expenditures tended to be greater than the impact on food expenditures. For international remittances, the impact on income was much greater than the impact on consumption expenditures, meaning that a large proportion of international remittances were used for savings and investment. The impact of internal remittances on income was slightly greater than the impact on consumption expenditures. In other words, most of the internal remittances were used for consumption expenditures.

Suggested Citation

  • 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.
  • Handle: RePEc:unt:jnapdj:v:16:y:2009:i:1:p:59-92
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    File URL: http://www.unescap.org/sites/default/files/apdj-16-1-3-NguyenVC.pdf
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    References listed on IDEAS

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    1. Taylor, J. Edward & Mora, Jorge & Adams, Richard H., Jr. & Lopez-Feldman, Alejandro, 2005. "Remittances, Inequality and Poverty: Evidence from Rural Mexico," Working Papers 60287, University of California, Davis, Department of Agricultural and Resource Economics.
    2. David McKenzie & Hillel Rapoport, 2011. "Can migration reduce educational attainment? Evidence from Mexico," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(4), pages 1331-1358, October.
    3. Acosta, Pablo & Calderon, Cesar & Fajnzylber, Pablo & Lopez, Humberto, 2008. "What is the Impact of International Remittances on Poverty and Inequality in Latin America?," World Development, Elsevier, vol. 36(1), pages 89-114, January.
    4. Alan de Brauw & Tomoko Harigaya, 2007. "Seasonal Migration and Improving Living Standards in Vietnam," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 430-447.
    5. Glewwe, Paul, 1991. "Investigating the determinants of household welfare in Cote d'Ivoire," Journal of Development Economics, Elsevier, vol. 35(2), pages 307-337, April.
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    Citations

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    Cited by:

    1. Junaid Ahmed & Mazhar Mughal, 2014. "How do consumption patterns of foreign and domestic remittance recipients and non recipients compare? Evidence from Pakistan," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 160, Courant Research Centre PEG.
    2. Quang Nguyen & Marie Claire Villeval & Hui Xu, 2012. "Trust and Trustworthiness under the Prospect Theory: A field experiment in Vietnam," Working Papers halshs-00730609, HAL.
    3. 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.
    4. 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.
    5. 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.
    6. Phan, Diep & Coxhead, Ian, 2016. "Rural-Urban Migration and Remittances in Vietnam Evidence from Migrant Tracer Data," Staff Paper Series 581, University of Wisconsin, Agricultural and Applied Economics.

    More about this item

    Keywords

    International remittances; internal remittances; household welfare; expenditure; income; Viet Nam;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

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