IDEAS home Printed from https://ideas.repec.org/p/got/gotcrc/206.html
   My bibliography  Save this paper

Improving health in Tajikistan: remittances trump other income

Author

Listed:
  • Sophia Kan

    (Georg-August University Göttingen)

Abstract

This paper investigates the impact of remittances on health outcomes in Tajikistan and finds a positive effect. While existing literature shows that remittances increase health care expenditure, expenditure alone is an incomplete proxy for health outcomes. Moreover, existing literature on health outcomes focuses mainly on infants and children, leaving out a significant share of the population. Our study explores the impact of remittances on proxies of health outcomes beyond expenditure for all household members (adults and children). We use an IV-approach to control for the endogeneity of remittances, and find that on average, remittances have a much larger effect than other sources of income on health expenditure and health outcomes. We also explore two possible transmission channels for how remittances affect health and find that remittances do not affect the likelihood of purchasing medicine in lieu of seeking care when ill; instead remittances have a positive and significant effect on the likelihood of seeking direct medical care.

Suggested Citation

  • Sophia Kan, 2016. "Improving health in Tajikistan: remittances trump other income," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 206, Courant Research Centre PEG.
  • Handle: RePEc:got:gotcrc:206
    as

    Download full text from publisher

    File URL: http://www2.vwl.wiso.uni-goettingen.de/courant-papers/CRC-PEG_DP_206.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Valero-Gil, Jorge, 2008. "Remittances and the household’s expenditures on health," MPRA Paper 9572, University Library of Munich, Germany.
    2. Joshua D. Angrist & Alan B. Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 69-85, Fall.
    3. Démurger, Sylvie & Xu, Hui, 2011. "Return Migrants: The Rise of New Entrepreneurs in Rural China," World Development, Elsevier, vol. 39(10), pages 1847-1861.
    4. Costas Meghir, 2004. "A Retrospective on Friedman's Theory of Permanent Income," Economic Journal, Royal Economic Society, vol. 114(496), pages 293-306, June.
    5. Adams, Richard Jr. & Page, John, 2005. "Do international migration and remittances reduce poverty in developing countries?," World Development, Elsevier, vol. 33(10), pages 1645-1669, October.
    6. Chang, Hongqin & Dong, Xiao-yuan & MacPhail, Fiona, 2011. "Labor Migration and Time Use Patterns of the Left-behind Children and Elderly in Rural China," World Development, Elsevier, vol. 39(12), pages 2199-2210.
    7. Case, Anne & Deaton, Angus, 1998. "Large Cash Transfers to the Elderly in South Africa," Economic Journal, Royal Economic Society, vol. 108(450), pages 1330-1361, September.
    8. Piracha, Matloob & Randazzo, Teresa & Vadean, Florin, 2013. "Remittances and Occupational Outcomes of the Household Members Left-Behind," IZA Discussion Papers 7582, Institute of Labor Economics (IZA).
    9. John Anyanwu & Andrew E. O. Erhijakpor, 2010. "Do International Remittances Affect Poverty in Africa?," African Development Review, African Development Bank, vol. 22(1), pages 51-91.
    10. Combes, Jean-Louis & Ebeke, Christian, 2011. "Remittances and Household Consumption Instability in Developing Countries," World Development, Elsevier, vol. 39(7), pages 1076-1089, July.
    11. Margherita Comola & Mariapia Mendola, 2013. "The Formation of Migrant Networks," Development Working Papers 353, Centro Studi Luca d'Agliano, University of Milano.
    12. Binzel, Christine & Assaad, Ragui, 2011. "Egyptian men working abroad: Labour supply responses by the women left behind," Labour Economics, Elsevier, vol. 18(S1), pages 98-114.
    13. Adams Jr., Richard H. & Cuecuecha, Alfredo, 2010. "Remittances, Household Expenditure and Investment in Guatemala," World Development, Elsevier, vol. 38(11), pages 1626-1641, November.
    14. Acosta, Pablo & Fajnzylber, Pablo & Lopez, J. Humberto, 2007. "The impact of remittances on poverty and human capital : evidence from Latin American household surveys," Policy Research Working Paper Series 4247, The World Bank.
    15. Richard H. Thaler, 2008. "Mental Accounting and Consumer Choice," Marketing Science, INFORMS, vol. 27(1), pages 15-25, 01-02.
    16. Rao, B. Bhaskara & Hassan, Gazi Mainul, 2011. "A panel data analysis of the growth effects of remittances," Economic Modelling, Elsevier, vol. 28(1-2), pages 701-709, January.
    17. Lina Cardona Sosa & Carlos Medina, 2006. "Migration as a Safety Net and Effects of Remittances on Household Consumption: The Case of Colombia," BORRADORES DE ECONOMIA 003219, BANCO DE LA REPÚBLICA.
    18. Mckenzie, David & Rapoport, Hillel, 2007. "Network effects and the dynamics of migration and inequality: Theory and evidence from Mexico," Journal of Development Economics, Elsevier, vol. 84(1), pages 1-24, September.
    19. Kalaj, Ermira Hoxha, 2010. "Are Remittances Spent in a Healthy Way? Evidence from Albania," MPRA Paper 49172, University Library of Munich, Germany.
    20. David J. McKenzie & Nicole Hildebrandt, 2005. "The Effects of Migration on Child Health in Mexico," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2005), pages 257-289, August.
    21. Catalina Amuedo-Dorantes & Tania Sainz & Susan Pozo, 2007. "Remittances and healthcare expenditure patterns of populations in origin communities : evidence from Mexico," INTAL Working Papers 1450, Inter-American Development Bank, INTAL.
    22. David McKenzie & John Gibson & Steven Stillman, 2010. "How Important Is Selection? Experimental vs. Non-Experimental Measures of the Income Gains from Migration," Journal of the European Economic Association, MIT Press, vol. 8(4), pages 913-945, June.
    23. Acosta, Pablo & Calderon, Cesar & Fajnzylber, Pablo & Lopez, Humberto, 2008. "What is the Impact of International Remittances on Poverty and Inequality in Latin America?," World Development, Elsevier, vol. 36(1), pages 89-114, January.
    24. repec:fth:prinin:455 is not listed on IDEAS
    25. Clemént, Matthieu, 2011. "Remittances and Household Expenditure Patterns in Tajikistan: A Propensity Score Matching Analysis," Asian Development Review, Asian Development Bank, vol. 28(2), pages 58-87.
    26. Michael Grossman, 1972. "The Demand for Health: A Theoretical and Empirical Investigation," NBER Books, National Bureau of Economic Research, Inc, number gros72-1, Juni.
    27. Maria Cristina Zhunio & Sharmila Vishwasrao & Eric P. Chiang, 2012. "The influence of remittances on education and health outcomes: a cross country study," Applied Economics, Taylor & Francis Journals, vol. 44(35), pages 4605-4616, December.
    28. Gupta, Sanjeev & Pattillo, Catherine A. & Wagh, Smita, 2009. "Effect of Remittances on Poverty and Financial Development in Sub-Saharan Africa," World Development, Elsevier, vol. 37(1), pages 104-115, January.
    29. Sarah Dolfin & Garance Genicot, 2010. "What Do Networks Do? The Role of Networks on Migration and “Coyote” Use," Review of Development Economics, Wiley Blackwell, vol. 14(2), pages 343-359, May.
    30. Catalina Amuedo-Dorantes & Tania Sainz & Susan Pozo, 2007. "Remittances and Healthcare Expenditure Patterns of Populations in Origin Communities: Evidence from Mexico," IDB Publications (Working Papers) 9355, Inter-American Development Bank.
    31. repec:dau:papers:123456789/11393 is not listed on IDEAS
    32. Margherita Comola & Mariapia Mendola, 2015. "Formation of Migrant Networks," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 592-618, April.
    33. Alexei P Kireyev, 2006. "The Macroeconomics of Remittances; The Case of Tajikistan," IMF Working Papers 06/2, International Monetary Fund.
    34. Lisa Chauvet & Flore Gubert & Sandrine Mespl�-Somps, 2013. "Aid, Remittances, Medical Brain Drain and Child Mortality: Evidence Using Inter and Intra-Country Data," Journal of Development Studies, Taylor & Francis Journals, vol. 49(6), pages 801-818, June.
    35. World Bank, 2014. "World Development Indicators 2014," World Bank Publications, The World Bank, number 18237, Juni.
    36. Joshua Angrist & Alan Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Working Papers 834, Princeton University, Department of Economics, Industrial Relations Section..
    37. World Bank, 2009. "Tajikistan : Poverty Assessment," World Bank Other Operational Studies 3159, The World Bank.
    38. HwaJung Choi, 2007. "Are Remittances Insurance? Evidence from Rainfall Shocks in the Philippines," World Bank Economic Review, World Bank Group, vol. 21(2), pages 219-248, May.
    39. repec:dau:papers:123456789/10842 is not listed on IDEAS
    40. Flore Gubert, 2002. "Do Migrants Insure Those who Stay Behind? Evidence from the Kayes Area (Western Mali)," Oxford Development Studies, Taylor & Francis Journals, vol. 30(3), pages 267-287.
    41. World Bank, 2011. "Migration and Remittances Factbook 2011 : Second Edition," World Bank Publications, The World Bank, number 2522, Juni.
    42. Catalina Amuedo-Dorantes & Susan Pozo, 2006. "Remittances as insurance: evidence from Mexican immigrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(2), pages 227-254, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    health; migration; remittances; Tajikistan;

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:got:gotcrc:206. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dominik Noe). General contact details of provider: http://www.uni-goettingen.de/en/82144.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.