Analysis of Impact of Remittance on Poverty in Nigeria
This study analyzes the impact of remittances on poverty in Nigeria, using data from the 2004 Nigerian National Living Standard Survey (NNLSS). The paper used a multinomial logit model with instrumental variables and the propensity score matching (PSM) method to estimate the impact of remittances on poverty. The use of these methods was based on two reasons. The first is to control for the problems of selectivity and endogeneity. The second is the fact that the implicit hypothesis of estimating the expenditures of the counterfactual group, as done in some previous studies, is in similarity between the group that receives remittances (treated) and the other that does not (untreated). The study finds that both internal and international remittances reduce the incidence, depth and severity of poverty. The statistical tests show a significant Average Treatment Effect on the Treated (ATT), due to internal and external remittances. The receipt of internal remittances reduces the poverty headcount by 11.14% and poverty gap by 9.7% while the receipt of international remittances makes poverty indices almost nil.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: Pavillon J.A. De Seve, Québec, Québec, G1V 0A6|
Phone: 1-418-656-2131, ext. 2697
Web page: http://www.pep-net.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- Kaivan Munshi, 2003. "Networks in the Modern Economy: Mexican Migrants in the U. S. Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 118(2), pages 549-599.
- Steve F Koch & Ssekabira Ntege, 2008.
"Returns to Schooling: Skills Accumulation or Information Revelation?,"
87, Economic Research Southern Africa.
- Steven F. Koch & S. Ssekabira Ntege, 2008. "Returns To Schooling: Skills Accumulation Or Information Revelation?," Working Papers 200812, University of Pretoria, Department of Economics.
- Sami Bibi & Jean-Yves Duclos, 2004.
"Equity and Policy Effectiveness with Imperfect Targeting,"
0423, Economic Research Forum, revised Oct 2004.
- Bibi, Sami & Duclos, Jean-Yves, 2007. "Equity and policy effectiveness with imperfect targeting," Journal of Development Economics, Elsevier, vol. 83(1), pages 109-140, May.
- Sami Bibi & Jean-Yves Duclos, 2003. "Equity and Policy Effectiveness with Imperfect Targeting," Cahiers de recherche 0335, CIRPEE.
- Jalan, Jyotsna & Ravallion, Martin, 2003.
"Does piped water reduce diarrhea for children in rural India?,"
Journal of Econometrics,
Elsevier, vol. 112(1), pages 153-173, January.
- Jalan, Jyotsna & Ravallion, Martin, 2001. "Does piped water reduce diarrhea for children in rural India ?," Policy Research Working Paper Series 2664, The World Bank.
- Taylor, J. Edward & Mora, Jorge & Adams, Richard H., Jr., 2005.
"Remittances, Inequality and Poverty: Evidence from Rural Mexico,"
2005 Annual meeting, July 24-27, Providence, RI
19245, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Taylor, J. Edward & Mora, Jorge & Adams, Richard H., Jr. & Lopez-Feldman, Alejandro, 2005. "Remittances, Inequality and Poverty: Evidence from Rural Mexico," Working Papers 60287, University of California, Davis, Department of Agricultural and Resource Economics.
- Heckman, James, 2013.
"Sample selection bias as a specification error,"
Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- K Clark & S Drinkwater, 2001. "An Investigation of Household Remittance Behaviour," The School of Economics Discussion Paper Series 0114, Economics, The University of Manchester.
- repec:pri:indrel:dsp01tt44pm85v is not listed on IDEAS
- Douglas Miller & Anna Paulson, 2000. "Informal Insurance and Moral Hazard: Gambling and Remittances in Thailand," Econometric Society World Congress 2000 Contributed Papers 1463, Econometric Society.
- Abdelkrim Araar, 2006. "On the Decomposition of the Gini Coefficient: an Exact Approach, with an Illustration Using Cameroonian Data," Cahiers de recherche 0602, CIRPEE.
- John Page & Sonia Plaza, 2006. "Migration Remittances and Development: A Review of Global Evidence," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(2), pages 245-336, December.
- Alan J. Auerbach & Kevin A. Hassett, 2002.
"A New Measure of Horizontal Equity,"
American Economic Review,
American Economic Association, vol. 92(4), pages 1116-1125, September.
- Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-62, March.
- Schmertmann, Carl P., 1994. "Selectivity bias correction methods in polychotomous sample selection models," Journal of Econometrics, Elsevier, vol. 60(1-2), pages 101-132.
- Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March.
When requesting a correction, please mention this item's handle: RePEc:lvl:pmmacr:2012-09. 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: (Manuel Paradis)
If references are entirely missing, you can add them using this form.