IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-04270192.html
   My bibliography  Save this paper

The impact of remittances on household consumption: evidence from Morocco

Author

Listed:
  • Boutaina Ismaili Idrissi

    (UM5 - Université Mohammed V de Rabat [Agdal])

  • Sara Kawkaba

    (UM5 - Université Mohammed V de Rabat [Agdal])

Abstract

Remittances play a very important role in a country's economic growth and development, while at the same time having a substantial impact on improving household well-being at the microeconomic level. This paper uses propensity score matching as an econometric model to assess the impact of remittances on household consumption. The main source of the analysis is the National Survey on Household Consumption and Expenditure (ENCDM) conducted by the High Commission for Planning (HCP) during the period 2013-2014. This method consists of associating each household that has received remittances from a Moroccan Resident Abroad (MRA) with a household with similar demographic, socioeconomic and geographical characteristics but which, for its part, has not received remittances. The results show that there is a significate and positive relationship between remittances and consumption. As an additional income, remittances increase household consumption expenditure which indicates that higher the level of remittances, higher would be the consumption. As a consequence, these remittances decrease household poverty levels.

Suggested Citation

  • Boutaina Ismaili Idrissi & Sara Kawkaba, 2023. "The impact of remittances on household consumption: evidence from Morocco," Post-Print hal-04270192, HAL.
    • Handle: RePEc:hal:journl:hal-04270192
    DOI: 10.5281/zenodo.10045503
    Note: View the original document on HAL open archive server: https://hal.science/hal-04270192
    as

    Download full text from publisher

    File URL: https://hal.science/hal-04270192/document
    Download Restriction: no
    File URL: https://libkey.io/10.5281/zenodo.10045503?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Stark, Oded, 1991. "Migration in LDCs: Risk, Remittances, and the Family," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 28(4), pages 39-41.
    2. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    3. Poirine, Bernard, 1997. "A theory of remittances as an implicit family loan arrangement," World Development, Elsevier, vol. 25(4), pages 589-611, January.
    4. Mr. Sanjeev Gupta & Ms. Catherine A Pattillo & Ms. Smita Wagh, 2007. "Impact of Remittances on Poverty and Financial Development in Sub-Saharan Africa," IMF Working Papers 2007/038, International Monetary Fund.
    5. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-918, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mr. Jacques Bouhga-Hagbe, 2004. "A Theory of Workers' Remittances with An Application to Morocco," IMF Working Papers 2004/194, International Monetary Fund.
    2. Leonardo Di Marco & Olga Marzovilla & Luciano Nieddu, 2015. "The Role Of Remittances On The Business Cycle: The Case Of The Philippines," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 69(3), pages 119-130, July-Sept.
    3. Le, Thanh, 2011. "Remittances for economic development: The investment perspective," Economic Modelling, Elsevier, vol. 28(6), pages 2409-2415.
    4. Mudziviri Nziramasanga & Jonathan Yoder, 2013. "The check in the mail: household characteristics and migrant remittance from the US to Mexico," Applied Economics, Taylor & Francis Journals, vol. 45(8), pages 1055-1073, March.
    5. Agarwal, Reena & Horowitz, Andrew W., 2002. "Are International Remittances Altruism or Insurance? Evidence from Guyana Using Multiple-Migrant Households," World Development, Elsevier, vol. 30(11), pages 2033-2044, November.
    6. Puja Guha, 2014. "Economics of Migration and Remittances: A Review Article," Working Papers id:5618, eSocialSciences.
    7. Rios Avila, Fernando & Schlarb, Eva, 2008. "Bank accounts and savings - the impact of remittances and migration: a case study of Moldova," Kiel Advanced Studies Working Papers 448, Kiel Institute for the World Economy (IfW Kiel).
    8. Mamun, Md. Al & Sohag, Kazi & Uddin, Gazi Salah & Shahbaz, Muhammad, 2015. "Remittance and domestic labor productivity: Evidence from remittance recipient countries," Economic Modelling, Elsevier, vol. 47(C), pages 207-218.
    9. Mr. Jacques Bouhga-Hagbe, 2006. "Altruism and Workers’ Remittances: Evidence from Selected Countries in the Middle East and Central Asia," IMF Working Papers 2006/130, International Monetary Fund.
    10. C. Kenrick Hunte, 2004. "Workers' Remittances, Remittance Decay and Financial Deepening in Developing Countries," The American Economist, Sage Publications, vol. 48(2), pages 82-94, October.
    11. Brown, Richard P. C., 1997. "Estimating remittance functions for Pacific Island Migrants," World Development, Elsevier, vol. 25(4), pages 613-626, January.
    12. Dean Yang, 2008. "International Migration, Remittances and Household Investment: Evidence from Philippine Migrants' Exchange Rate Shocks," Economic Journal, Royal Economic Society, vol. 118(528), pages 591-630, April.
    13. Tineke Fokkema & Eralba Cela & Elena Ambrosetti, 2013. "Giving from the Heart or from the Ego? Motives behind Remittances of the Second Generation in Europe," International Migration Review, Wiley Blackwell, vol. 47(3), pages 539-572, September.
    14. Dustmann, Christian & Mestres, Josep, 2010. "Remittances and temporary migration," Journal of Development Economics, Elsevier, vol. 92(1), pages 62-70, May.
    15. Naiditch, Claire & Vranceanu, Radu, 2011. "Remittances as a social status signaling device," Research in Economics, Elsevier, vol. 65(4), pages 305-318, December.
    16. Kaczmarczyk, Pawel, 2013. "Money for Nothing? Ukrainian Immigrants in Poland and their Remitting Behaviors," IZA Discussion Papers 7666, Institute of Labor Economics (IZA).
    17. Deodat E. Adenutsi & Meshach J. Aziakpono & Matthew K. Ocran, 2011. "The Changing Impact Of Macroeconomic Environment On Remittance Inflows In Sub-Saharan Africa," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 3(2 (July)), pages 136-167.
    18. Jamal Bouoiyour & Amal Miftah, 2012. "Le retour des migrants marocains dans leur pays d'origine, quand ? Dans quelles circonstances ?," Working papers of CATT hal-01880345, HAL.
    19. Elke Holst & Andrea Schäfer & Mechthild Schrooten, 2010. "Gender, Transnational Networks and Remittances: Evidence from Germany," SOEPpapers on Multidisciplinary Panel Data Research 296, DIW Berlin, The German Socio-Economic Panel (SOEP).
    20. de la Briere, Benedicte & de Janvry, Alain & Lambert, Sylvie & Sadoulet, Elisabeth, 1997. "Why do migrants remit?: an analysis for the Dominican Sierra," FCND discussion papers 37, International Food Policy Research Institute (IFPRI).

    More about this item

    Keywords

    Faculté des Sciences juridiques économiques et sociales Agdal Avenue des Nations-Unies B.P. 721 Agdal -Rabat - Consumption Migration Morocco Poverty Propensity score matching Remittances. JEL Classification : F24 Paper type: Empirical Research; Faculté des Sciences juridiques; économiques et sociales Agdal Avenue des Nations-Unies; B.P. 721 Agdal -Rabat - Consumption; Migration; Morocco; Poverty; Propensity score matching; Remittances. JEL Classification : F24 Paper type: Empirical Research;
    All these keywords.

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

    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:hal:journl:hal-04270192. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.