The impact of remittances on household consumption: evidence from Morocco

Boutaina Ismaili Idrissi () and Sara Kawkaba ()
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Boutaina Ismaili Idrissi: UM5 - Université Mohammed V de Rabat [Agdal]
Sara Kawkaba: UM5 - Université Mohammed V de Rabat [Agdal]

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Abstract: Remittances play a very important role in a country's economic growth and development, while at the same time having a substantial impact on improving household well-being at the microeconomic level. This paper uses propensity score matching as an econometric model to assess the impact of remittances on household consumption. The main source of the analysis is the National Survey on Household Consumption and Expenditure (ENCDM) conducted by the High Commission for Planning (HCP) during the period 2013-2014. This method consists of associating each household that has received remittances from a Moroccan Resident Abroad (MRA) with a household with similar demographic, socioeconomic and geographical characteristics but which, for its part, has not received remittances. The results show that there is a significate and positive relationship between remittances and consumption. As an additional income, remittances increase household consumption expenditure which indicates that higher the level of remittances, higher would be the consumption. As a consequence, these remittances decrease household poverty levels.

Keywords: Faculté des Sciences juridiques économiques et sociales Agdal Avenue des Nations-Unies B.P. 721 Agdal -Rabat - Consumption Migration Morocco Poverty Propensity score matching Remittances. JEL Classification : F24 Paper type: Empirical Research; Faculté des Sciences juridiques; économiques et sociales Agdal Avenue des Nations-Unies; B.P. 721 Agdal -Rabat - Consumption; Migration; Morocco; Poverty; Propensity score matching; Remittances. JEL Classification : F24 Paper type: Empirical Research (search for similar items in EconPapers)
Date: 2023-10-30
New Economics Papers: this item is included in nep-ara, nep-fdg and nep-inv
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Published in International Journal of Accounting, Finance, Auditing, Management and Economics, 2023, ⟨10.5281/zenodo.10045503⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04270192

DOI: 10.5281/zenodo.10045503

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