The Effects of Domestic and International Remittances on Food Insecurity in Low- and Middle-Income Countries

Michael D. Smith and Maria S. Floro

Journal of Development Studies, 2021, vol. 57, issue 7, 1198-1220

Abstract: Despite food insecurity being a key policy priority for aid organisations and governments around the world, the effects of remittances on food insecurity in low- and middle-income countries are largely unknown. Using data from the 2014–15 waves of the Gallup World Poll, and the first global experiential measure of food insecurity, we examine the impacts of receiving domestic, international, and both (domestic and international) remittances on individual-level food insecurity in 92 low- and middle-income countries. We estimate a series of endogenous multinomial treatment effects models, using both two-stage residual inclusion and maximum simulated likelihood methods. Results show domestic and international remittances have differential impacts on the probability of being food insecure. Controlling for endogeneity, we find that domestic, international, and combinations of both remittances decrease food insecurity. However, international remittances have a much greater impact than domestic remittances. Results also show heterogeneous effects of remittances across economic development rankings, where remittances provide greater protection against experiencing food insecurity in lower-income countries than in middle-income countries. These findings highlight the importance of migration and remittance flows as mechanisms for reducing food insecurity. This has potentially important policy implications for those seeking to reduce global hunger to achieve the SDG targets.

Date: 2021
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DOI: 10.1080/00220388.2020.1849619

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