Framework for Harnessing Value from International Remittances to Improve Household Welfare

The primary goal of the research was to evaluate the influence of international remittances on households welfare-based results obtained from primary data collected from remittance recipients. To attain that goal, the study examined theoretical and empirical evidence to ascertain prior expectations on the association between international remittances and household welfare. The study adapted and utilized a logistic regression technique to analyze primary cross-sectional data collected from survey respondents. Findings from the research indicated that households that receive international remittances have better household welfare relative to those that do not. The study also established that remittances have macroeconomic benefits, which include gains in foreign currency reserves, financial development, provision of capital to small businesses, and increasing demand for domestic equity securities on the Zimbabwe Stock Market. There is a need for the Reserve Bank of Zimbabwe to extend its financial literacy training to remittance recipients. This helps recipients make better use of remittances, such as contributing to national savings and starting small businesses to enhance their economic welfare.