Where Did All the Remittances Go? Understanding the Impact of Remittances on Consumption Patterns in Rural China
Yu Zhu (),
Zhongmin Wu (),
Liquan Peng and
Studies in Economics from School of Economics, University of Kent
We focus on the impact of migrants’ remittances on consumption patterns in rural China, allowing for endogeneity of remittances and county fixed-effects. We find that the marginal propensity to consume out of remittances is close to unity, which is far greater than that out of non-migrant earnings or farm income. These findings imply that rural households take remittances as permanent income and are consistent with the prevalence of circular and repeat migration which is largely caused by the combination of the restrictive hukou (household registration) system and the rigid land tenure system in China.
Keywords: Rural-Urban Migration; Remittances; Consumption Patterns; Fixed-Effect Instrumental-Variables Estimation (search for similar items in EconPapers)
JEL-codes: D12 D13 J61 R23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cna, nep-dev, nep-mig and nep-tra
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 404 Not Found
Journal Article: Where did all the remittances go? Understanding the impact of remittances on consumption patterns in rural China (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ukc:ukcedp:0907
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Studies in Economics from School of Economics, University of Kent School of Economics, University of Kent, Canterbury, Kent, CT2 7FS.
Bibliographic data for series maintained by Tracey Girling ().