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Do remittances support consumption during crisis? Evidence from Kosovo

Listed author(s):
  • Laetitia Duval


    (Imperial College London)

  • Francois-Charles Wolff


    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - UN - Université de Nantes)

This paper focuses on the effect of remittances on per capita consumption over time in a context of conflict , war-to-peace transition and crisis. We use two household surveys from Kosovo with unique timing , one collected immediately after the civil war in 2000 and the other during the economic crisis in 2010. This territory , in which the tension among ethnic groups is the focus of international concern , is one of the top remittance-­‐receiving countries in the world. We examine the effect of remittances not only at the average level of consumption , but also at various parts of the distribution of consumption using quantile regressions. We find that remittances alleviate poverty by enhancing the consumption level of the most vulnerable households , and the positive effect of remittances on consumption has remained constant between 2000 and 2010. This result may be connected with the resilience of remittances.

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Paper provided by HAL in its series Post-Print with number hal-01298296.

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Date of creation: 08 Mar 2016
Publication status: Published in Oxford Development Studies, Taylor & Francis (Routledge), 2016, <10.1080/13600818.2016.1156080>
Handle: RePEc:hal:journl:hal-01298296
DOI: 10.1080/13600818.2016.1156080
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