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

  • Nguyen Viet Cuong

    ()

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

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.

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Article provided by United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in its journal Asia-Pacific Development Journal.

Volume (Year): 16 (2009)
Issue (Month): 1 (June)
Pages: 59-92

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Handle: RePEc:unt:jnapdj:v:16:y:2009:i:1:p:59-92
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  1. McKenzie, David & Rapoport, Hillel, 2006. "Can migration reduce educational attainment ? Evidence from Mexico," Policy Research Working Paper Series 3952, The World Bank.
  2. Taylor, J. Edward & Mora, Jorge & Adams, Richard H., Jr., 2005. "Remittances, Inequality and Poverty: Evidence from Rural Mexico," 2005 Annual meeting, July 24-27, Providence, RI 19245, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Acosta, Pablo & Calderon, Cesar & Fajnzylber, Pablo & Lopez, Humberto, 2007. "What is the impact of international remittances on poverty and inequality in Latin America ?," Policy Research Working Paper Series 4249, The World Bank.
  4. Tomoko Harigaya & Alan de Brauw, 2004. "Seasonal Migration and Improving Living Standards in Vietnam," Department of Economics Working Papers 2004-10, Department of Economics, Williams College.
  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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