The Impact of Remittances on Poverty Alleviation in Selected Emerging Markets

Tsaurai, Kunofiwa

doi:10.2478/cer-2018-0011

Cited by 20 publications

(16 citation statements)

References 28 publications

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“…The results presented in Table 3, Panel A and Panel B, show that remittance has a negative impact on poverty in the short run and in the long run under Model 2 when infant mortality rate is used as a proxy of poverty (Pov2). These results are in line with findings from previous studies (see, Adam and Page 2005;Gupta et al, 2009;Anyanwu and Erhijakpan 2010;Nahar and Arshad 2017;Vacaflores 2018;Tsaurai 2018). The…”

Section: Cointegration Testsupporting

confidence: 93%

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

Musakwa

Odhiambo

2019

Economic Structures

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The growing need to find a solution to poverty alleviation has resulted in heightened interest from researchers to find the most important economic variable that could serve as a panacea to poverty alleviation. Consequently, the surge in remittance inflows globally, in general, and in low and middle-income countries, in particular, has ignited studies focused on the establishment of the nature of the relationship between remittance and poverty. According to Migration Policy Institute (2019), the global monetary transfers from migrants reached $689 billion in 2018 with remittance inflows to low and middle-income countries, taking 77% of the global transfer. The monetary transfers to low and middle-income countries are expected to grow by $21 billion in 2019 and projected to reach $550 billion (Migration Policy Institute 2019). Remittance has grown to be an important source of foreign income besides foreign direct investment and official development assistance (ODA) (Ratha et al. 2018).

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Section: Cointegration Testsupporting

confidence: 93%

“…In the study, remittance was found to mitigate 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.…”

Section: Review Of Related Literaturementioning

confidence: 99%

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

Musakwa

Odhiambo

2019

Economic Structures

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“…Studies on the impact of remittances on poverty are also split between those that found a positive impact (Adam Jr. and Page 2005; Gupta et al . 2009; Tsaurai 2018; Musakwa and Odhiambo 2019) and those that found the relationship to be sensitive depending on the poverty proxy used (Azam et al . 2016; Wangle and Devkota 2018).…”

Section: A Review Of Related Literaturementioning

confidence: 99%

The causal relationship between remittance and poverty in South Africa: A multivariate approach

Musakwa¹,

Odhiambo²

2021

Int Social Sci J

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The main objective of this study is to investigate the causality between international remittance inflows and poverty in South Africa using time series data from 1980 to 2017. The study was motivated by the increasing role of remittances in poverty reduction and human development on the one hand, and the burgeoning inflow of remittances on the other hand. Since 1998, South Africa remittance inflows have shown a more or less upward trend. As an example, in 1998, the country recorded an increase in remittance inflows of 18.5 per cent and later maintained a steady increase in remittance inflows with an average increase of 25.3 per cent during the period 1999 ‐2017. Using a multivariate Granger‐causality model, our results show that there is a distinct unidirectional causal flow from poverty to remittances in the short term when the infant mortality rate is used as a proxy for poverty. However, when household consumption expenditure is used as a proxy, no causality is found to prevail in both the short and the long term. Policy implications are discussed.

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“…Thus, the correlations between remittances, population migration, poverty and economic growth from the macro and microeconomic perspective were analyzed for 68 developing countries, and the period 1990-2010, the authors considering that remittances increase with increasing emigration, having a positive effect on poverty reduction, but the impact of remittances on economic growth is difficult to quantify [23]. The impact of remittances on poverty has been analyzed for six emerging countries over the period 1994-2014, using two scenarios; a pessimistic one, where remittances negatively affect both economic growth and per capita income, and an optimistic one in which the remittance flow contributes to the reduction of poverty, the conclusion being the need to establish critical points that remittances have to overcome in order to reduce poverty in labor-exporting countries [24].…”

Section: Methodsmentioning

confidence: 99%

The Effect of Remittances on Poverty in the Emerging Countries of the European Union

2019

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In this paper we study the evolution of remittances and risk of poverty threshold for nine emerging countries in the European Union and analyzed the evolution and trend of the share of remittances in the risk of poverty threshold. The analysis was performed on data taken from the Eurostat database for the period 2005–2017. The statistical analysis of the data showed that the evolution of both remittances and risk of poverty threshold was heavily influenced by the global economic crisis. Although after the crisis, the risk of poverty threshold has seen a growing trend in all emerging countries, the remittances have experienced sinuous variations, dramatic declines for some of the countries (drastically for Romania and Latvia) and significant increases for others (Hungary). The results of the analysis using time-dependent regression models lead to the conclusion that, although the share of remittances in risk of poverty threshold diminished abruptly after the 2009 economic crisis, in the short term it is expected to maintain a growth trend for most of the analyzed countries (Bulgaria, Czechia, Hungary, Lithuania, Poland, Romania, and Slovakia), followed downward tendency after 2018 for Bulgaria and Romania, and after 2020 for Hungary and Lithuania. For Latvia and Estonia, both quadratic and cubic models estimate a decreasing evolution.

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The Impact of Remittances on Poverty Alleviation in Selected Emerging Markets

Cited by 20 publications

References 28 publications

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

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

The causal relationship between remittance and poverty in South Africa: A multivariate approach

The Effect of Remittances on Poverty in the Emerging Countries of the European Union

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