Impact of remittances on poverty: an analysis of data from a set of developing countries

Basanta Pradhan () and Malvika Mahesh ()
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Basanta Pradhan: Institute of Economic Growth, Delhi
Malvika Mahesh: Institute of Economic Growth, Delhi

Economics Bulletin, 2016, vol. 36, issue 1, 108-117

Abstract: Remittances from international migrants constitute the largest source of financial inflows to developing countries. Poverty is a sensitive issue in developing countries, making the relationship between remittances and poverty important. In this paper, we analyze data from 25 developing countries for three years to determine the effects of total remittances received and net remittances received on poverty. We find that both are effective in reducing poverty. We find that GDP per capita and poverty have a negative relationship and higher income inequality implies more poverty. This paper supports the view that inward remittances reduce poverty in developing countries.

Keywords: Poverty; Remittances; Developing (search for similar items in EconPapers)
JEL-codes: I3 J6 (search for similar items in EconPapers)
Date: 2016-02-04
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Citations: View citations in EconPapers (10)

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