scholarly journals The impacts of international migrants’ remittances on household consumption volatility in developing countries

2018 ◽  
Vol 59 ◽  
pp. 171-187 ◽  
Author(s):  
Ripon Kumar Mondal ◽  
Rasheda Khanam
Keyword(s):  
Developing Countries ◽  
Household Consumption ◽  
Consumption Volatility ◽  
International Migrants

Remittances and the Politics of Austerity

2018 ◽  
Author(s):  
Roy Germano
Keyword(s):  
Developing Countries ◽  
Social Welfare ◽  
Economic Crisis ◽  
Social Welfare Function ◽  
Global Markets ◽  
Welfare Programs ◽  
Social Instability ◽  
Social Welfare Programs ◽  
Poor Families ◽  
International Migrants

Remittances sent by international migrants have become an increasingly important source of social welfare in the developing world. This chapter explores what remittances are, why migrants send them, and how poor families use them. I argue in this chapter that remittances are more than just gifts from one relative to another. They play a larger social welfare role that complements funds that governments spend on social welfare programs. This social welfare function has become particularly important in recent decades as developing countries have prioritized austerity and integrated into volatile global markets. I argue that by filling a welfare gap in an age of austerity, remittances help to reduce the suffering and anger that so often trigger political and social instability during times of economic crisis.

Relating Household Consumption Expenditures to Road Traffic Fatalities: A Rural–Urban Study

2021 ◽  
pp. 036119812110332
Author(s):  
Ruchika Agarwala ◽  
Vinod Vasudevan
Keyword(s):  
Developing Countries ◽  
Traffic Safety ◽  
Rural Areas ◽  
Urban Areas ◽  
Household Consumption ◽  
Household Expenditure ◽  
Traffic Fatality ◽  
Rural And Urban Areas ◽  
Rural And Urban ◽  
The Relationship

Research shows that traffic fatality risk is generally higher in rural areas than in urban areas. In developing countries, vehicle ownership and investments in public transportation typically increase with economic growth. These two factors together increase the vehicle population, which in turn affects traffic safety. This paper presents a study focused on the relationship of various factors—including household consumption expenditure data—with traffic fatality in rural and urban areas and thereby aims to fill some of the gaps in the literature. One such gap is the impacts of personal and non-personal modes of travel on traffic safety in rural versus urban areas in developing countries which remains unexplored. An exhaustive panel data modeling approach is adopted. One important finding of this study is that evidence exists of a contrasting relationship between household expenditure and traffic fatality in rural and urban areas. The relationship between household expenditure and traffic fatality is observed to be positive in rural areas and a negative in urban areas. Increases in most expenditure variables, such as fuel, non-personal modes of travel, and two-wheeler expenditures, are found to be associated with an increase in traffic fatality in rural areas.

scholarly journals Organising household consumption and occupational proportions

2018 ◽  
Vol 26 (4) ◽  
pp. 748-772
Author(s):  
Tolu Olarewaju
Keyword(s):  
Developing Countries ◽  
Occupational Status ◽  
Household Consumption ◽  
Quantile Regressions ◽  
Content Type ◽  
Self Employment ◽  
Causality Tests ◽  
Positive Effect ◽  
Practical Implications ◽  
Better Than

Purpose The purpose of this paper is to contribute to the occupational status and entrepreneurship research in developing countries by proposing that there are implications for household consumption depending on the occupational status proportion of households. When the occupational proportion of the household changes, household consumption is affected. This effect also changes depending on what quantile level the household is in terms of household consumption. Design/methodology/approach The paper makes use of OLS and quantile regressions to examine 6,919 households comprising 40,294 individuals from the 2009 Nigerian Living standards measurement survey. Findings The paper finds that there are implications for household consumption based on the proportion of individuals in each occupational category. The contributions of each employment proportion changes at different quantiles with self-employed individuals increasing household consumption at the lower quantiles but reducing household consumption at the upper quantiles. Crucially, having a higher proportion of unemployed individuals in the household is oftentimes better than having a higher proportion of own account self-employed individuals. Research limitations/implications This paper offers new insights into how occupation proportion influences household consumption in developing countries. As a result, the household could seek to organise its members in such a way as to maximise combined household consumption, as diverse occupational statuses contribute differently to the household consumption at different quantile levels. The nature of the data used in this study however does not allow for causality tests. Practical implications The proportion of employment statuses in the household has implications for household consumption and so the mix of employment in the household is important. The self-employed could also be involved in activities to enhance household consumption that are not captured by labour income. However, self-employment does not seem to always have a positive effect on household consumption and sometimes unemployment might be better. Originality/value The paper provides a new way to view the household as an organising entity in terms of how it can allocate employment proportions to maximise household consumption.

scholarly journals Geography of international migration in the modern age of globalization

2019 ◽  
pp. 31-40 ◽  
Author(s):  
L. M. Sintserov
Keyword(s):  
Developing Countries ◽  
International Migration ◽  
Western Europe ◽  
Sustainable Growth ◽  
World Population ◽  
Financial Flows ◽  
Global Migration ◽  
The World ◽  
The Usa ◽  
International Migrants

The article deals with international migration during the last decades of the 20th and at the beginning of the 21st centuries and its economic-geographical analysis. The paper provides an overview of opinions about the dating of the contemporary era of global migration. It is shown that only after completion of spatial restructuring of migration processes and with the transition to sustainable growth of the share of international migrants in the world population, the modern increase of migration begins. On the basis of the UN statistics the main sources of migrants to the countries of Western Europe have been determined as well as shifts in the geographical structure of migrant population of the region that have taken place in the last quarter of a century. Two migration waves directed to the core of the European region from its southern and then from the eastern periphery are determined. The transformation of the USA population structure caused by the migration inflow from Latin America and Asia is described. The ratio of the main directions of global migration is shown: South-South, South-North, etc. At the same time, it is noted that a rather limited part of international migrations is associated with the asynchrony of demographic processes in the regions of the world. The article also discusses the remittances of migrants from developing countries to their homeland, forming powerful financial flows, which are second only to foreign direct investment. They play an especially important role in the economies of developing countries. The calculations show that the contribution of international migrants to the world economy far exceeds their share in the world population.

scholarly journals Household Consumption Volatility and Poverty Risk: Case Studies from South Africa and Tanzania

2020 ◽  
Vol 2020 (051) ◽  
pp. 1
Author(s):  
Roberto Perrelli ◽  
Matthieu Bellon ◽  
Carlo Pizzinelli
Keyword(s):  
South Africa ◽  
Case Studies ◽  
Household Consumption ◽  
Consumption Volatility ◽  
Poverty Risk

Reopening the debate on the relationship among remittances, household consumption stability and economic growth in emerging markets

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dimitar Eftimoski ◽  
Dushko Josheski
Keyword(s):  
Economic Growth ◽  
Generalized Method Of Moments ◽  
Recipient Country ◽  
Household Consumption ◽  
Finite Sample ◽  
Content Type ◽  
Consumption Volatility ◽  
Stabilizing Effect ◽  
The Impact ◽  
The Relationship

PurposeThe impact of remittances on household consumption stability and economic growth is not quite clear. This paper attempts to reopen the debate on the relationship among these three variables. The current remittance literature suggests that a decrease in household consumption volatility, induced by remittances, automatically leads to economic growth. This paper challenges these arguments by stating that, under certain circumstances, there is no automatic relationship among remittances, household consumption stability and growth.Design/methodology/approachThe authors approach the question from the perspective of emerging Central, Eastern and Southeastern European (CESEE) countries. The authors use the two-step system generalized method of moments (GMM) estimator with the Windmeijer (2005) finite-sample correction. To test the existence of the possible non-linear effects of remittances on household consumption stability and economic growth, the authors use threshold regressions.FindingsThe authors find that remittances significantly reduce household consumption volatility. They exhibit a consumption-smoothing effect on recipient households. This stabilizing effect happens not through the preventive role of remittances, but rather through their compensatory role. Remittances produce a weaker stabilizing effect on household consumption when the remittance to GDP ratio of the recipient country is above the estimated threshold level of 4.5%. The authors also find that there is a negatively significant and linear impact of remittances on growth. There is no evidence to suggest that remittances can foster productive investment and therefore promote economic growth in CESEE countries, which means that: (1) the remittances cannot be treated as a source of funds to invest in human and physical capital and (2) the remittances are compensatory rather than profit-oriented.Originality/valueAs far as the authors are aware, this is the first study that investigates the impact of remittances on both household consumption stability and economic growth simultaneously.

scholarly journals Will the Chinese economy be more volatile in the future? Insights from urban household survey data

2019 ◽  
Vol 15 (4) ◽  
pp. 790-808 ◽  
Author(s):  
Jian Yu ◽  
Xunpeng Shi ◽  
James Laurenceson
Keyword(s):  
Economic Growth ◽  
Decomposition Method ◽  
Household Consumption ◽  
Variance Decomposition ◽  
Chinese Government ◽  
Content Type ◽  
Consumption Volatility ◽  
Intertemporal Dynamics ◽  
Consumption Goods ◽  
The Impact

Purpose Consumption volatility is a key source of economic growth volatility; thus, it is an important factor in designing macroeconomic policy. The purpose of this paper is to investigate the factors that determine household consumption volatility, using urban household survey (UHS) data over the period 2002–2009 in 18 provinces in China. Design/methodology/approach Both a traditional variance decomposition method and an advanced variance decomposition method are used. Findings The traditional variance decomposition method suggests that heterogeneity of consumption goods is the key to analyze consumption volatility in China. Consumption of transportation makes the highest aggregate contribution and per-unit volatility in consumption volatility, whereas consumption of food makes the second highest aggregate contribution and the lowest per-unit volatility. Further investigation with the advanced variance decomposition method, which allows the authors to capture intertemporal dynamics and cross-household differences simultaneously, finds that the main factor determining the consumption volatility in China is intertemporal dynamics, rather than cross-household differences. Research limitations/implications Future research could fruitfully explore four issues. First, consumption upgrading has increased the volatility of China’s household consumption. How much will this affect economic growth in China under its “new normal” conditions, and how should the Chinese government respond? Second, differences between UHS data and aggregate data in the calculations of consumption risk sharing need to be investigated. Third, it is important to investigate the channels through which the Chinese government can enhance its ability to spread consumption risks and thus reduce consumer consumption volatility. Finally, further study could extend the current 18 provinces to a nation-wide sample and update the data beyond 2009 to estimate the impact of the global financial crisis. Practical implications The results suggest that when policy makers design macroeconomic policies to smooth consumption volatility, they should consider heterogeneity in household consumption goods, regional disparity and intertemporal dynamics simultaneously. Well-managed volatility of Chinese household consumption can contribute to a stable economic growth in China and the world. Social implications Well-managed volatility of Chinese household consumption can contribute to a stable economic growth in China and the world. Originality/value This paper fills this gap by using China’s UHS data to assess consumption volatility from the perspectives of heterogeneity in household consumption goods, cross-household differences and intertemporal dynamics. We make three contributions to the literature. The first contribution of this paper consists of demonstrating the contributions of heterogeneity in household consumption goods to consumption volatility. The second contribution consists of using the advanced variance decomposition method proposed by Crucini and Telmer (2012). This decomposition methodology allows the authors to examine whether household consumption volatility is due to cross-household differences or intertemporal dynamics. The third contribution is that this paper takes Chinese residents’ consumption fluctuations as the starting point to analyze the impact of consumption fluctuations on the future trend of China’s economy.

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