Do Remittances Reduce Poverty in Developing Countries?

Costin-Alexandru Ciupureanu () and Mihai Daniel Roman ()
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Costin-Alexandru Ciupureanu: The Doctoral School of The Bucharest University of Economic Studies
Mihai Daniel Roman: The Bucharest University of Economic Studies

A chapter in The First Decade of Living with the Global Crisis, 2016, pp 185-192 from Springer

Abstract: Abstract Workers’ remittances represent a lifeline for the poor, increasing income for the families left behind. They represent an important link for the study of the impact of international migration in both origin and destination countries. This paper examines the effects of remittances on poverty in Poland, Romania, Ukraine and Turkey for the period 2002–2011. The results of the panel data analysis show that per capita official international remittances significantly reduce the level and depth of poverty in the analysed countries. A 10 % increase in per capita workers’ remittances will lead to a 5.3 % decline in the share of people living on less than $2 per person per day. Due to the use of informal channels for transferring money, an important share of remittances is left unrecorded. One possible way for the policymakers to deter the use of informal channels is by further creating incentives for lowering the costs for sending money back home. Also, better data and monitoring could bolster the rate of official remittances.

Keywords: International migration; Remittances; Poverty; Panel data model; F22; F24; I32 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:spr:conchp:978-3-319-24267-5_13

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DOI: 10.1007/978-3-319-24267-5_13

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