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Remittances, Household Welfare, and the COVID-19 Pandemic in Tajikistan

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  • EIJI YAMADA

    (Japan International Cooperation Agency (JICA) Bangladesh Office, Dhaka, Bangladesh2JICA–Ogata Sadako Research Institute for Peace and Development (JICA-RI), Tokyo, Japan)

  • SATOSHI SHIMIZUTANI

    (JICA-RI, Tokyo, Japan)

  • ENERELT MURAKAMI

    (JICA-RI, Tokyo, Japan)

Abstract

Remittance inflows are now the largest source of external financing to developing countries, but little research has yet firmly established the effect of remittances on household welfare. We investigate the case of Tajikistan, one of the most heavily remittance-dependent countries in the world. We use a panel dataset collected nationwide and employ an instrumental variable estimation to confirm a positive relationship between receiving remittances and household welfare after correcting for endogeneity. Moreover, we find that the effect of remittances on household spending is more pronounced in households whose head is male, older, and/or less educated. Then, we combine our estimated coefficients with the projected decline of remittance inflows as a result of the coronavirus disease (COVID-19) outbreak and show the pandemic’s adverse effect on household spending per capita.

Suggested Citation

  • Eiji Yamada & Satoshi Shimizutani & Enerelt Murakami, 2022. "Remittances, Household Welfare, and the COVID-19 Pandemic in Tajikistan," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 39(02), pages 147-174, September.
    • Handle: RePEc:wsi:adrxxx:v:39:y:2022:i:02:n:s0116110522500159
    DOI: 10.1142/S0116110522500159
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    Keywords

    COVID-19; household welfare; migration; remittances; Tajikistan;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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