Overseas Filipino Workers Remittances, Inequality and Quality of Life in the Philippines

Roperto Deluna and Sunshine Pedida

MPRA Paper from University Library of Munich, Germany

Abstract: This study examines the relationship among OFW remittances, inequality and quality of life in the Philippines. The study covered the period from 1990 to 2011 and employed Vector autoregressive (VAR) analysis to examine the relationship among the variables. Over the years, Human Development Index (HDI) as a measure of quality of life and remittances showed a generally increasing trend while the case is opposite for the level of inequality. Remittances and HDI has an average growth rate of 15.32% and 0.55% respectively. Inequality in the country has reduced on the average of 0.07% from 1990 to 2011. This generally implies that even in the ever increasing OFW remittances it has a very minimal effect on enhancing human development and reducing inequality in the country. Empirical results revealed that remittances has no significant effect on income inequality, however it has a significant effect on enhancing quality of life. In specific, for every unit increase in last year’s remittances, human development index will increase by 0.02. Results in granger causality revealed a bidirectional relationship between remittances and human development.

Keywords: VAR Model; HDI; Remittances; Inequality; Quality of Life (search for similar items in EconPapers)
JEL-codes: C32 E0 O11 (search for similar items in EconPapers)
Date: 2014-04
New Economics Papers: this item is included in nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/56070/1/MPRA_paper_56070.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:56070

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().