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The Role of Remittances in Household Resilience to Extreme Weather in the Kyrgyz Republic: Evidence from Panel Data

Author

Listed:
  • Kamalbek Karymshakov

    (Kyrgyz-Turkish Manas University)

  • Kijin Kim

    (Asian Development Bank)

  • Dina Azhgaliyeva

    (Asian Development Bank)

  • Dastan Aseinov

    (Kyrgyz-Turkish Manas University)

Abstract

Household resilience to extreme weather events depends critically on financial access, yet the role of remittances in shaping expenditure responses to such events remains insufficiently understood. This study examines how remittances are associated with household expenditure patterns under precipitation extremes in the Kyrgyz Republic, using nationally representative panel household survey data (2019–2023). Exploiting exogenous variation in remittance flows generated by historical migration networks and exchange rate movements, the analysis identifies a context-dependent buffering role of remittances. Remittances may help sustain household expenditure during periods of extreme weather, with the strongest protective effects observed among rural and high-altitude communities. However, rural households receiving remittances during excess rainfall episodes appear to reduce their expenditure shares on education and health. The middle-income households exhibit the strongest remittance-climate buffering patterns, while the poorest households show limited ability to leverage remittances for meaningful expenditure reallocation—likely reflecting the insufficiency of remittances relative to the scale of climate-induced losses.

Suggested Citation

  • Kamalbek Karymshakov & Kijin Kim & Dina Azhgaliyeva & Dastan Aseinov, 2026. "The Role of Remittances in Household Resilience to Extreme Weather in the Kyrgyz Republic: Evidence from Panel Data," ADB Economics Working Paper Series 858, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:023539
    DOI: 10.22617/WPS260363-2
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    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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