Foreign vs domestic remittances and household welfare: evidence from Mexico

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ernesto Aguayo-Téllez ◽  
Adelaido García-Andrés ◽  
Jose N. Martinez

Purpose This paper aims to analyse the differential impact of foreign and domestic remittances on household expenditure shares. Design/methodology/approach This study uses micro-data from a very large and detailed income-expenditure survey in Mexico and runs consumption-share Engel equations to estimate income (expenditure) elasticities for different consumption goods groups. Trying to account for the standard problems of endogeneity, this paper considers only nuclear households with migrant fathers and compare households that receive remittances from abroad, from within Mexico and those not receiving remittances. Findings This study finds that international remittances have a larger impact on the expenditure shares of women’s clothes, insurances and durable goods, while domestic remittances have a larger impact on the share of income dedicated to food, health and education. Originality/value Based on the results, differences in consumption shares between families receiving foreign and domestic remittances might depend not only on the relative size of the income transfer but also on the nature of the transfer and the sender’s capacity to monitor in person the use of those remittances. The results indicate that households that receive remittances from abroad present higher shares of consumption of some goods the literature commonly associates with the mothers’ preferences.

2019 ◽  
Vol 27 (81) ◽  
pp. 207-225
Author(s):  
José M. Durán-Cabré ◽  
Alejandro Esteller Moré ◽  
Mariona Mas-Montserrat ◽  
Luca Salvadori

Purpose The purpose of this paper is to study the concept of tax gap, that is the difference between the total amount of taxes collected and the total tax revenues that would be collected under full tax compliance. Design/methodology/approach The authors also present the methodology to estimate the gap for two taxes levied on wealth: the wealth tax and the inheritance and gift tax; both are administered in Spain by the regional tax authorities. Findings The authors point out that its estimation offers useful information about the relative size and nature of non-compliance, as well as its evolution over time. Likewise, the tax gap is a valuable instrument not only to define enforcement strategies of the tax administration but also to enhance its accountability. Nonetheless, the methodology used to estimate the tax gap and, consequently, the interpretation of the results is subject to limitations that are discussed in the paper. Originality/value Finally, the paper provides the results of the estimations obtained from using microdata: 44.34 per cent gap in the wealth tax and 41.26 per cent in the inheritance and gift tax.


2018 ◽  
Vol 45 (2) ◽  
pp. 246-258 ◽  
Author(s):  
Jacob Novignon ◽  
Justice Nonvignon ◽  
Richard Mussa

Purpose Understanding the linkages between poverty and inequality is vital to any sustainable development and poverty reduction strategies. In Ghana, while poverty has reduced significantly over the years, inequality has increased. The purpose of this paper is to examine the linkages between inequality in household expenditure components and overall inequality and poverty in Ghana. Design/methodology/approach Using microdata from the sixth round of the Ghana Living Standards Survey (GLSS 6) conducted in 2012/2013, marginal effects and elasticities were computed for both within- and between-component analysis. Findings The results suggest that, in general, reducing within-component inequality significantly reduces overall poverty and inequality in Ghana, compared with between-component inequality. Specifically, inequality in education and health expenditure components were the largest contributors to overall poverty and inequality. The findings imply that policies directed toward reducing within-component inequality will be more effective. Specifically, the findings of the study corroborate recent policies on education and health in Ghana aimed at inequality within these components. Sustaining and scaling up these policies will be a step in the right direction. Originality/value The study contributes to existing studies in several ways: first, this study becomes the first attempt to examine inequality-poverty nexus using household expenditure components in Ghana. Second, the use of expenditure in place of income is an addition to the literature. Income is usually subject to reporting biases and is minimal in expenditure. Finally, the findings highlight the need for poverty reduction strategies to focus on specific household components including education and health. Blanket interventions may not be effective in reducing inequality and poverty.


2016 ◽  
Vol 26 (1) ◽  
pp. 50-68 ◽  
Author(s):  
Sony Kuriakose ◽  
Justin Paul

Purpose – Consolidation through mergers and acquisitions indicates one of the major outcomes of the financial transformation process and contemporary trend in the Indian banking sector. Literature suggests that the pre-merger financials of banks are crucial in deciding the post-merger performance of merged entities. In this context, the aim of the present study is to provide insights on the strategic and financial similarities of merging partners in the bank mergers that occurred in the post-liberalization India. Design/methodology/approach – This paper considers all bank merger deals in the post-liberalization period, which involve purchase consideration either in the form of stock or cash. Hypotheses about the strategic similarities and dissimilarities are tested. The study considers all important aspects such as relative size of targets, diversity of earnings, efficiency, financial leverage, prudential norms and profitability. Findings – The study finds that banks are dissimilar in most of the key areas, and these might have an adverse impact on the post-merger performance. Originality/value – The study is original because we take into account all the bank merger deals in the period, which involve purchase consideration either in the form of stock or cash.


2020 ◽  
Vol 28 (83) ◽  
pp. 133-151
Author(s):  
Juan Ignacio Martín-Legendre ◽  
Pablo Castellanos-García ◽  
José Manuel Sánchez-Santos

Purpose The purpose of this paper is to analyze the changes in wealth and consumption inequality in Spain and estimate the consumption effects of housing and financial wealth. Design/methodology/approach The estimations are made using micro-data from the Spanish Survey of Household Finances (2002–2014) applying cross-section, panel and interquartile techniques. Findings The findings of this paper suggest that there was an increase in wealth inequality during the period under analysis and a reduction in consumption inequality. Also, the authors find a significant positive effect of wealth on consumer expenditure. Disaggregating by asset type, the value of the main residence is the category with the highest estimated effect on consumption, whereas the remaining types of assets, although still positive and generally significant, have more modest effects on consumption. However, the estimated coefficients and their significance can change substantially depending on the phase of the economic cycle and the position of the household in the income distribution. Originality/value These results provide new empirical evidence on the effects of household wealth changes on their consumption behavior, the differences depending on the household's position in the distribution and the fluctuations of these estimated coefficients throughout a period of profound economic upheavals.


2017 ◽  
Vol 27 (4) ◽  
pp. 778-807 ◽  
Author(s):  
Gaurangi Laud ◽  
Ingo Oswald Karpen

Purpose The purpose of this paper is to identify antecedents and consequences of customers’ value co-creation behaviour (VCB). VCB as a means to facilitate value realisation processes is gaining importance in service research and practice. Encouraging such enactments can be challenging, but can also offer competitive advantages. Design/methodology/approach We empirically investigate a conceptual model by converging three contemporary concepts of co-creation research – embeddedness, VCB and value-in-context – and examining the interdependencies between them. Data were collected in an online forum of a leading international weight-management firm. Findings Results suggest that customers’ embeddedness is a key antecedent of customers’ VCB in a service system. The three embeddedness dimensions – structural, relational and cultural – have a differential impact on customers’ VCB. Furthermore, findings illustrate that customers’ VCB has a significant impact on their object-oriented, self-oriented and brand-oriented social value-in-context outcomes. Research limitations/implications This study contributes by empirically investigating and validating antecedents and consequences of VCB in a service system. In doing so, the study highlights the significance of the nature of customer’s social constellations to develop contexts where value outcomes are actualised. Understanding the factors that shape VCB offers insights for firms to recognise how and where value propositions can be deployed that drives on-going co-creation processes. Originality/value This study is the first empirical research to offer insights into important pre-conditions and subsequent outcomes concurrently to illustrate how customers’ VCB can be managed and nurtured for sustainable value co-creation processes within service systems. This research further advances mid-range theorizing and microfoundational perspectives in marketing.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Imran Khan ◽  
Meike Eilert

Purpose The purpose of this paper is to investigate the differential influence of buyer and supplier relationship-specific investments (RSI) on a buyer’s relationship governance decisions. Design/methodology/approach Based on transaction economics and social exchange theories (SET), the authors develop a framework to understand how and when buyer and supplier RSI influence governance decisions. This model was tested using a survey of 301 Information Technology (IT) procurement professionals across a multitude of industries. Findings This research shows that buyer and supplier RSI impact governance decisions differently. Supplier investments are positively associated with relationship formalization when goals between both parties are shared. Buyer investments are more strongly related to formalization in technologically uncertain environments. Originality/value This research adds to the literature by integrating arguments from both transaction cost and SET to hypothesize why buyer and supplier investments have a differential impact on relationship governance decisions. In line with these arguments, it ultimately demonstrates conditions that render such investments more/less influential.


2015 ◽  
Vol 27 (3) ◽  
pp. 421-443 ◽  
Author(s):  
Anisur R. Faroque ◽  
Yoshi Takahashi

Purpose – The purpose of this paper is to investigate the contingent relationship between government marketing assistance for export and the performance of early internationalizing firms in a developing country’s low-tech industry. Design/methodology/approach – The authors employ hierarchical multiple regression based on the data obtained from Bangladesh, a south Asian developing country and a leading exporter of apparel products worldwide. The authors used a sample of 224 early internationalizing apparel firms to test the hypotheses. Findings – Research describes the relationship between export assistance and performance as direct. Recently, some researchers have suggested moderators between them. The authors argue that the relationship between the two is contingent on the level of export commitment. The authors find that neither informational nor experiential marketing assistance is directly related to export performance. The relationship between informational assistance and export performance is significantly, but (unexpectedly) negatively, moderated by export commitment. The effect of experiential assistance is positively, but only marginally, moderated by export commitment. Originality/value – Contrary to researchers’ overarching focus on a direct relationship, the authors investigate the moderation on the relationship between export informational and experiential marketing assistance, and early internationalizing firms’ performance in a developing country’s low-tech industry setting. The authors use export commitment as the moderator; it is one of the most important internal determinants of export performance and extremely relevant in early internationalizing firms. The differential impact of informational and experiential assistance provides additional insights.


2019 ◽  
Vol 22 (1) ◽  
pp. 5-8
Author(s):  
Ian Cummins

Purpose The purpose of this paper is to discuss the recent National Appropriate Adult Network (NAAN) report on the role of the appropriate adult. Design/methodology/approach This paper is based on the NAAN report and a review of relevant policy and research literature. Findings There to Help 2 highlights that there are still significant gaps in the provision of appropriate adult schemes across England and Wales. These gaps potentially place vulnerable adults at increased risk. Originality/value This paper is a review of recent research.


2019 ◽  
Vol 41 (4) ◽  
pp. 740-757 ◽  
Author(s):  
Sophie Hennekam ◽  
Subramaniam Ananthram ◽  
Steve McKenna

Purpose The purpose of this paper is to investigate how individuals perceive and react to the involuntary demotion of a co-worker in their organisation. Design/methodology/approach The authors draw on 46 semi-structured in-depth interviews (23 dyads) with co-workers of demoted individuals. Findings The findings suggest that an individual’s observation of the demotion of a co-worker has three stages: their perception of fairness, their emotional reaction and their behavioural reaction. The perception of fairness concerned issues of distributive, procedural, interpersonal and informational justice. The emotional responses identified were feelings of disappointment/disillusion, uncertainty, vulnerability and anger. Finally, the behavioural reactions triggered by their emotional responses included expressions of voice, loyalty, exit and adaptation. Originality/value Perceptions of (in)justice perpetrated on others stimulate emotional and behavioural responses, which impacts organisational functioning. Managers should therefore pay attention to the way a demotion is perceived, not only by those directly concerned, but also by co-workers as observers.


2019 ◽  
Vol 32 (4) ◽  
pp. 455-471
Author(s):  
Jorge Cruz-Cárdenas ◽  
Jorge Guadalupe-Lanas ◽  
Ekaterina Zabelina ◽  
Andrés Palacio-Fierro ◽  
Margarita Velín-Fárez ◽  
...  

Purpose The purpose of this paper is to understand in-depth how consumers create value in their lives using WhatsApp, the leading mobile instant messaging (MIM) application. Design/methodology/approach The study adopts the perspective of customer-dominant logic (CDL) and uses a qualitative multimethod design involving 3 focus groups and 25 subsequent in-depth interviews. The research setting was Ecuador, a Latin American country. Findings Analysis and interpretation of the participants’ stories made it possible to identify and understand the creation of four types of value: maintaining and strengthening relationships; improving role performance; emotional support; and entertainment and fun. In addition, the present study proposes a conceptual model of consumer value creation as it applies to MIM. Practical implications Understanding the way consumers create value in their lives using MIM is important not only for organizations that offer MIM applications, but also for those companies that develop other applications for mobile phones or for those who wish to use MIM as an electronic word-of-mouth vehicle. Originality/value The current study is one of the first to address the topic of consumer behavior in the use of technologies from the perspective of CDL; this perspective enables an integrated qualitative vision of value creation in which the consumer is the protagonist.


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