Remittances, Household Expenditure and Investment in Rural India: Evidence from NSS data

Jajati K. Parida, Sanjay K. Mohanty and K. Ravi Raman
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Jajati K. Parida: National Institute of Labour Economics Research and Development, NITI Aayog, Government of India
Sanjay K. Mohanty: Harvard School of Public Health, USA and Department of Fertility Studies, International Institute of Population Sciences, Mumbai
K. Ravi Raman: Nehru Memorial Museum and Library, Ministry of Culture, Govt. of India

Indian Economic Review, 2015, vol. 50, issue 1, 79-104

Abstract: The paper attempts to study the migration trends and the factors driving it in India and also to understand and compare the marginal spending behavior of three groups of households in India - those not receiving remittances, receiving internal remittances and receiving international remittances - with an emphasis on its impact on investment in human capital defined as education and health. The analysis, based on a nation-wide sample survey, reveals that migration, besides playing a major role in poverty reduction, also has an important bearing on marginal spending behavior much in keeping with Engels Law and also that the amount set aside towards human capital formation is significant, which has wider policy implications.

Keywords: Remittances; Household Spending; Human Development (search for similar items in EconPapers)
JEL-codes: F24 O15 P46 (search for similar items in EconPapers)
Date: 2015
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