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The effects of international remittances on poverty, inequality, and development in rural Egypt:

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  • Adams, Richard H., Jr.

Abstract

Despite their importance, there has been little analysis and even less agreement about the effects of international remittances on the economies of labor-exporting countries. Do households with migrant workers "squander" the money earned abroad on newly desired consumer goods? Are remittances largely earned by the sons of already well-to-do households? Do remittances increase the degree of income inequality between richer and poorer rural households? In this report, the author examines these issues from the standpoint of a small area of rural Egypt. Adams uses income data from households with and without migrants to determine the effects of remittances on poverty, income distribution, and rural development. The study is based on a survey of 1,000 households conducted in 1 986/87 in three villages in Minya Governorate, a province about 250 kilometers south of Cairo. In a second round of the survey, 150 selected households were interviewed about their spending behavior. Although the research is based on rural Egypt, its findings are relevant for policymakers in other labor-exporting countries.

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Paper provided by International Food Policy Research Institute (IFPRI) in its series Research reports with number 86.

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Date of creation: 1991
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Handle: RePEc:fpr:resrep:86
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Keywords: Rural development Egypt Finance.; Emigrant remittances Egypt.; Rural poor Egypt.; Income distribution Egypt.; Alien labor; Egyptian Economic conditions.;

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  1. Lawrence Brown & Andrew Goetz, 1987. "Development-related contextual effects and individual attributes in third world migration processes: A Venezuelan example," Demography, Springer, vol. 24(4), pages 497-516, November.
  2. Stark, Oded & Taylor, J Edward & Yitzhaki, Shlomo, 1986. "Remittances and Inequality," Economic Journal, Royal Economic Society, vol. 96(383), pages 722-40, September.
  3. Ram, Rati & Singh, Ram D., 1988. "Farm households in rural Burkina Faso: Some evidence on allocative and direct return to schooling, and male-female labor productivity differentials," World Development, Elsevier, vol. 16(3), pages 419-424, March.
  4. Carvajal, Manuel J & Geithman, David T, 1974. " An Economic Analysis of Migration in Costa Rica," Economic Development and Cultural Change, University of Chicago Press, vol. 23(1), pages 105-22, October.
  5. Cox, Donald & Jimenez, Emmanuel, 1990. "Achieving Social Objectives through Private Transfers: A Review," World Bank Research Observer, World Bank Group, vol. 5(2), pages 205-18, July.
  6. Alderman, Harold & von Braun, Joachim & Sakr, Sakr Ahmed, 1982. "Egypt's food subsidy and rationing system: a description," Research reports 34, International Food Policy Research Institute (IFPRI).
  7. Choucri, Nazli, 1986. "The hidden economy: A new view of remittances in the arab world," World Development, Elsevier, vol. 14(6), pages 697-712, June.
  8. Bilsborrow RE, 1981. "Surveys of internal migration in low-income countries: the need for and content of community-level variables," ILO Working Papers 211439, International Labour Organization.
  9. Knowles, James C. & Anker, Richard, 1981. "An analysis of income transfers in a developing country : The case of Kenya," Journal of Development Economics, Elsevier, vol. 8(2), pages 205-226, April.
  10. Falaris, Evangelos M, 1979. "The Determinants of Internal Migration in Peru: An Economic Analysis," Economic Development and Cultural Change, University of Chicago Press, vol. 27(2), pages 327-41, January.
  11. Lipton, Michael, 1980. "Migration from rural areas of poor countries: The impact on rural productivity and income distribution," World Development, Elsevier, vol. 8(1), pages 1-24, January.
  12. Russell, Sharon Stanton, 1986. "Remittances from international migration: A review in perspective," World Development, Elsevier, vol. 14(6), pages 677-696, June.
  13. Flavin, Marjorie A, 1981. "The Adjustment of Consumption to Changing Expectations about Future Income," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 974-1009, October.
  14. Bruton, Henry J, 1983. "Egypt's Development in the Seventies," Economic Development and Cultural Change, University of Chicago Press, vol. 31(4), pages 679-704, July.
  15. Adams, Richard H, Jr, 1989. "Worker Remittances and Inequality in Rural Egypt," Economic Development and Cultural Change, University of Chicago Press, vol. 38(1), pages 45-71, October.
  16. House, William J. & Rempel, Henry, 1980. "The determinants of interregional migration in Kenya," World Development, Elsevier, vol. 8(1), pages 25-35, January.
  17. Richard Bilsborrow & Thomas McDevitt & Sherrie Kossoudji & Richard Fuller, 1987. "The impact of origin community characteristics on rural-urban out-migration in a developing country," Demography, Springer, vol. 24(2), pages 191-210, May.
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