Do remittances affect healthcare expenditure?: evidence from Kenya

Bharati Basu () and Aranya Biswas ()
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Bharati Basu: Central Michigan University
Aranya Biswas: Central Michigan University

Economics Bulletin, 2024, vol. 44, issue 3, 1034 - 1048

Abstract: Using the World Bank's data for migration and remittances in Kenya, this paper examines the impact of remittances on household healthcare expenditures. A Tobit analysis together with an instrumental variable approach reveals a significant positive effect of remittances on healthcare expenditures. The effect is bigger for internal and within-Africa migration compared to out-of-Africa migration. Households with a higher volume of remittances are more sensitive to this positive income effect compared to those with a smaller amount of remittance income. These insights may help Kenya and other lower-middle-income countries in incentivizing remittances and restructuring the healthcare system to achieve their goal of Universal Health Care.

Keywords: Remittances; Health Care Expenditure; Kenya (search for similar items in EconPapers)
JEL-codes: I1 O1 (search for similar items in EconPapers)
Date: 2024-09-30
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