The Impact of Foreign Remittances on Poverty Alleviation: Global Evidence

Abstract

ABSTRACT. This study using an empirical analysis to examine the impact of foreign remittances along with some other variables (foreign aid, debt, human capital, inflation and income) on poverty alleviation in 39 countries including the lower middle, upper middle and high income countries. The study uses the data covering the period of 1990-2014 and the method of Panel fully modified OLS (FMOLS). The FMOLS estimates reveal that increase in income leads to decrease in poverty. Foreign remittances are found to have positive impact on poverty alleviation and statistically significant only for upper middle income countries. The impacts of aid and debt on poverty are found to be positive, indicating both factors contribute positively to poverty expansion. In the same vein, the results exhibit no visible evidence that foreign aid has an effective apparatus for the poverty mitigation. Thus, policy-makers need to devise an appropriate policy to rationalize dependency on foreign aid and mitigate poverty largely by encouraging remittances inflows.

THE impact of remittance inflows on poverty in Botswana: an ARDL approach

“…Among the studies that attempted to establish the relationship between poverty and remittance, the results largely reflect a positive relationship (Adam and Page 2005;Acosta 2008;Gupta et al 2009; Fuente 2010; Anyanwu and Erhijakpan 2010; Adam and Cuecuacha 2013; Akobeng 2016; Nahar and Arshad 2017; Vacaflores 2018; Tsaurai 2018). However, there are other studies that found the relationship to be dependent on the country of study, methodology and time under investigation (Azam et al 2016;Wangle and Devkota 2018). Adam and Page (2005) in a study on 71 developing countries investigated the impact of remittance on poverty.…”

“…Tsaurai (2018), in a separate study on selected emerging market economies, found remittance to reduce poverty. Azam et al (2016) investigated the impact of remittance on poverty reduction in 39 lower-middle, upper-middle and high-income countries employing panel data. Remittance was found to have a positive impact on poverty reduction in upper-middle-income countries with a 1% increase in remittance, leading to a 0.2% reduction in poverty.…”

“…Among the studies that investigated the impact of remittance on poverty, some found remittance to reduce poverty (see Adam and Page 2005;Adam and Cuecuacha 2013;Vacaflores 2018). Some studies found remittance to have no impact on poverty, implying that low and middle-income countries may not reduce poverty through remittance inflows (see, for example, Azam et al (2016). A few studies have taken a step further to investigate the causal relationship between remittance and poverty (see, for example, Abdulnasser and Salah 2014; Gaaliche and Gaaliche 2014;Yasman et al 2015) and found the relationship between the two inconclusive as well.…”

Impact of corporate social responsibility on brand extension success via organizational trust: moderating role of the CSR communication

“…A brand augmentation procedure can be in two essential structures. To start with is the vertical brand expansion and the second is the flat brand augmentation (Völckner and Sattler, 2006;Abidin et al, 2016;Azam et al, 2016;Haseeb et al, 2014a;Haseeb et al, 2014b). The vertical brand expansion implies that another item is presented, and the parent mark has a similar item classification, however the distinction lies in its quality and value level (Keller and Aaker, 1992).…”

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“…Now in this time there is no accord with researches regarding direct link among CSR and brand loyalty. This task of CSR influence customer conduct is very difficult direct link conceptualized past (Klein & Dawar, 2004;Abidin et al, 2016;Azam et al, 2016;Haseeb et al, 2014a;Haseeb et al, 2014b). While the dimensions of CSR are many of constructs, but it is still needed that to identify contrast how every constructs CSR issue proposed by consumers.…”