International Remittances and Private Interhousehold Transfers: Exploring the Links

Y. Alem; L. Andersson

doi:10.1057/s41287-019-0193-4

International Remittances and Private Interhousehold Transfers: Exploring the Links

Y. Alem^*, L. Andersson

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

We investigate the effect of international remittances from migrated family members on informal interhousehold transfers—an issue that has received limited attention in the literature. Using rich panel data from urban Ethiopia spanning 15 years, we show that receiving international remittances increases the value of private domestic interhousehold transfers, whereas receiving domestic remittances does not have any effect. We also show that the transfers sent respond to shocks to a great extent. Our results provide new evidence on the trickle-down effects of international remittances, effects important to consider when analyzing the impact of international remittances on household outcomes in recipient countries.

Original language	English
Pages (from-to)	902-928
Number of pages	27
Journal	European Journal of Development Research
Volume	31
Issue number	4
Early online date	2019
DOIs	https://doi.org/10.1057/s41287-019-0193-4
Publication status	Published - Sept 2019

JEL classifications

f24 - Remittances
o15 - "Economic Development: Human Resources; Human Development; Income Distribution; Migration"

Keywords

Interhousehold transfers
International remittances
Panel data
Shocks
Urban Ethiopia
MIGRATION
PANEL
PERSISTENCE
INEQUALITY
RISK
POVERTY REDUCTION
INCOME
MOTIVES
CONSUMPTION
ALTRUISM

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10.1057/s41287-019-0193-4

Cite this

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title = "International Remittances and Private Interhousehold Transfers: Exploring the Links",

abstract = "We investigate the effect of international remittances from migrated family members on informal interhousehold transfers—an issue that has received limited attention in the literature. Using rich panel data from urban Ethiopia spanning 15 years, we show that receiving international remittances increases the value of private domestic interhousehold transfers, whereas receiving domestic remittances does not have any effect. We also show that the transfers sent respond to shocks to a great extent. Our results provide new evidence on the trickle-down effects of international remittances, effects important to consider when analyzing the impact of international remittances on household outcomes in recipient countries.",

keywords = "Interhousehold transfers, International remittances, Panel data, Shocks, Urban Ethiopia, MIGRATION, PANEL, PERSISTENCE, INEQUALITY, RISK, POVERTY REDUCTION, INCOME, MOTIVES, CONSUMPTION, ALTRUISM",

author = "Y. Alem and L. Andersson",

note = "Publisher Copyright: {\textcopyright} 2019, European Association of Development Research and Training Institutes (EADI).",

year = "2019",

month = sep,

doi = "10.1057/s41287-019-0193-4",

language = "English",

volume = "31",

pages = "902--928",

journal = "European Journal of Development Research",

issn = "0957-8811",

publisher = "Palgrave Macmillan Ltd.",

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TY - JOUR

T1 - International Remittances and Private Interhousehold Transfers: Exploring the Links

AU - Alem, Y.

AU - Andersson, L.

PY - 2019/9

Y1 - 2019/9

N2 - We investigate the effect of international remittances from migrated family members on informal interhousehold transfers—an issue that has received limited attention in the literature. Using rich panel data from urban Ethiopia spanning 15 years, we show that receiving international remittances increases the value of private domestic interhousehold transfers, whereas receiving domestic remittances does not have any effect. We also show that the transfers sent respond to shocks to a great extent. Our results provide new evidence on the trickle-down effects of international remittances, effects important to consider when analyzing the impact of international remittances on household outcomes in recipient countries.

AB - We investigate the effect of international remittances from migrated family members on informal interhousehold transfers—an issue that has received limited attention in the literature. Using rich panel data from urban Ethiopia spanning 15 years, we show that receiving international remittances increases the value of private domestic interhousehold transfers, whereas receiving domestic remittances does not have any effect. We also show that the transfers sent respond to shocks to a great extent. Our results provide new evidence on the trickle-down effects of international remittances, effects important to consider when analyzing the impact of international remittances on household outcomes in recipient countries.

KW - Interhousehold transfers

KW - International remittances

KW - Panel data

KW - Shocks

KW - Urban Ethiopia

KW - MIGRATION

KW - PANEL

KW - PERSISTENCE

KW - INEQUALITY

KW - RISK

KW - POVERTY REDUCTION

KW - INCOME

KW - MOTIVES

KW - CONSUMPTION

KW - ALTRUISM

U2 - 10.1057/s41287-019-0193-4

DO - 10.1057/s41287-019-0193-4

M3 - Article

SN - 0957-8811

VL - 31

SP - 902

EP - 928

JO - European Journal of Development Research

JF - European Journal of Development Research

IS - 4

ER -

International Remittances and Private Interhousehold Transfers: Exploring the Links

Abstract

JEL classifications

Keywords

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