Remittances and Household Consumption Instability in Developing Countries

Christian Hubert Ebeke () and Jean-Louis Combes

No 201015, Working Papers from CERDI

Abstract: This paper analyzes the impact of remittances on household consumption instability in developing countries on a large panel of developing countries. The four main results are the following: Firstly, remittances significantly reduce household consumption instability. Secondly, the insurance role played by remittances is highlighted: remittances dampen the effect of various sources of consumption instability in developing countries (natural disasters, agricultural shocks, discretionary fiscal policy). Thirdly, the insurance role played by remittances is more important in less financially developed countries. Fourthly, the overall stabilizing effect of remittances is mitigated when remittances over GDP exceed 8.5%.

Keywords: Remittances; Consumption instability; Financial Development; Shocks; Threshold effects (search for similar items in EconPapers)
JEL-codes: D02 D64 F02 F22 F29 (search for similar items in EconPapers)
Pages: 33
Date: 2010
New Economics Papers: this item is included in nep-dev and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Published in World Development, 2011, pages 1076-1089
Published in World Development

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Related works:
Journal Article: Remittances and Household Consumption Instability in Developing Countries (2011)
Working Paper: Remittances and Household Consumption Instability in Developing Countries (2011)
Working Paper: Remittances and Household Consumption Instability in Developing Countries (2011)
Working Paper: Remittances and Household Consumption Instability in Developing Countries (2011)
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