The differential impact of international remittances on poverty in developing and advanced economies: policy implications and insights

Nguyen Van Bon ()
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Nguyen Van Bon: Ho Chi Minh University of Banking (HUB)

Eurasian Economic Review, 2025, vol. 15, issue 3, No 1, 517-535

Abstract: Abstract Remittances are crucial for economic development in developing economies, enhancing foreign exchange reserves and living standards. However, their impact on poverty varies between developing and advanced economies. Using PMG and difference GMM estimators on data from 36 developing and 30 advanced economies from 2005 to 2023, we find that remittances reduce poverty in developing economies but worsen it in advanced ones. Trade openness also shows contrasting effects: it alleviates poverty in advanced economies but exacerbates it in developing ones. Meanwhile, economic growth and infrastructure development reduce poverty. These insights highlight key policy implications for governments in developing and advanced economies leveraging remittances to fight against poverty effectively.

Keywords: Remittance inflows; Poverty; Advanced economies; Developing economies; F22; F24; I32 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s40822-025-00314-1

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