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The Impact of International Remittances on Income, Work Efforts, Poverty and Inequality: Evidence from Vietnam

Author

Listed:
  • Nguyen, Cuong
  • van den Berg, Marrit
  • Lensink, Robert

Abstract

This study provides new empirical evidence on the impact of international remittances. Using data from the two most recent Vietnam Household and Living Standard Surveys, the paper estimates the effect of remittances on per capita income, per capita expenditure, work efforts, poverty and inequality. The estimates suggest that a rise in international remittances in Vietnam increases household income and expenditure. Yet, the study also finds evidence that international remittances may create a moral hazard problem by inducing disincentives to work. Moreover, the study suggests that international remittances, at the least in the short run, do not reduce poverty. They may even lead to an increase in inequality. Overall, the study casts doubts on the view that international remittances may play a crucial role in reducing poverty in developing countries.

Suggested Citation

  • Nguyen, Cuong & van den Berg, Marrit & Lensink, Robert, 2009. "The Impact of International Remittances on Income, Work Efforts, Poverty and Inequality: Evidence from Vietnam," MPRA Paper 50313, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:50313
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    File URL: https://mpra.ub.uni-muenchen.de/50313/1/MPRA_paper_50313.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Nguyen, Cuong & Nguyen, Hoa, 2013. "Do Internal and International Remittances Matter to Health, Education and Labor of Children? The Case of Vietnam," MPRA Paper 48672, University Library of Munich, Germany.
    2. Nguyen, Cuong, 2012. "Does Urbanization Help Poverty Reduction in Rural Areas?Evidence from a Developing Country," MPRA Paper 48660, University Library of Munich, Germany.

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    More about this item

    Keywords

    Remittances; poverty; expenditure; income; household survey; Vietnam;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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