Remittances and Household Consumption Instability in Developing Countries

Jean-Louis Combes and Christian Hubert Ebeke ()

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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)
Date: 2011-01-05
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00552245
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Citations: View citations in EconPapers (23)

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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 (2010)
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