Remittances, Household Welfare, and the COVID-19 Pandemic in Tajikistan

Eiji Yamada, Satoshi Shimizutani and Enerelt Murakami
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Eiji Yamada: Japan International Cooperation Agency (JICA) Bangladesh Office, Dhaka, Bangladesh2JICA–Ogata Sadako Research Institute for Peace and Development (JICA-RI), Tokyo, Japan
Enerelt Murakami: JICA-RI, Tokyo, Japan

Asian Development Review (ADR), 2022, vol. 39, issue 02, 147-174

Abstract: Remittance inflows are now the largest source of external financing to developing countries, but little research has yet firmly established the effect of remittances on household welfare. We investigate the case of Tajikistan, one of the most heavily remittance-dependent countries in the world. We use a panel dataset collected nationwide and employ an instrumental variable estimation to confirm a positive relationship between receiving remittances and household welfare after correcting for endogeneity. Moreover, we find that the effect of remittances on household spending is more pronounced in households whose head is male, older, and/or less educated. Then, we combine our estimated coefficients with the projected decline of remittance inflows as a result of the coronavirus disease (COVID-19) outbreak and show the pandemic’s adverse effect on household spending per capita.

Keywords: COVID-19; household welfare; migration; remittances; Tajikistan (search for similar items in EconPapers)
JEL-codes: F22 F24 O12 O15 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:wsi:adrxxx:v:39:y:2022:i:02:n:s0116110522500159

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DOI: 10.1142/S0116110522500159

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