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Remittances and Development: Do Remittance Channels Matter?

Andrianarison, Francis; Cisse, Fatou; Rambeloma, Tiana (2014), Remittances and Development: Do Remittance Channels Matter?. https://basepub.dauphine.fr/handle/123456789/17769

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NOPOOR WP#5_N°31_Remittances and Development - Do Remittance Transfer Channels Matter.pdf (1.042Mb)
Type
Document de travail / Working paper
Date
2014
Series title
NOPOOR Working Paper
Series number
31
Pages
31
Metadata
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Author(s)
Andrianarison, Francis
Consortium pour la Recherche Economique et Sociale [CRES]
Cisse, Fatou
Consortium pour la Recherche Economique et Sociale [CRES]
Rambeloma, Tiana
Consortium pour la Recherche Economique et Sociale [CRES]
Abstract (EN)
This paper uses a nationally-representative household survey carried out in Senegal to examine how remittance transfer channels aspects the marginal spending behavior of households. Two …finding emerge. First, controlling for selection and endogeneity, households receiving remittances through informal transfer channels spend more at margin on key consumption good compared to what they would have spent on this good in receiving remittance through formal channels. Second, formal remittances channels lead to signicantly increase marginal spending on two investments goods education and productive goods. At margin, households receiving remittances through informal transfer channels spend less on education and productive goods compared to what they would have spent on this good in receiving remittances through formal channels. These fi…ndings hold when we partition the data by quintile group based on household expenditure. Our findings support to the growing literature view that remittances can actually have a positive impact on economic development by increasing the level of investment in human capital and productive assets.
Subjects / Keywords
Remittance Channels; productive goods; Investment; Remittances; International Migration; Migration
JEL
O16 - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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