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The impact of remittances on household consumption: evidence from Morocco

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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
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. Poirine, Bernard, 1997. "A theory of remittances as an implicit family loan arrangement," World Development, Elsevier, vol. 25(4), pages 589-611, January.
    Full references (including those not matched with items on IDEAS)

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    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

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