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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.

Suggested Citation

  • Adams, Richard H., Jr., 1991. "The effects of international remittances on poverty, inequality, and development in rural Egypt:," Research reports 86, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:resrep:86
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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;Population Association of America (PAA), vol. 24(4), pages 497-516, November.
    2. 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.
    3. Stark, Oded & Taylor, J Edward & Yitzhaki, Shlomo, 1986. "Remittances and Inequality," Economic Journal, Royal Economic Society, vol. 96(383), pages 722-740, September.
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    15. repec:ilo:ilowps:211439 is not listed on IDEAS
    16. 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.
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