The effect of remittances on poverty in developing countries

• Κύριος συγγραφέας: Γιώργος, Γιούρτης
• Άλλοι συγγραφείς: Giorgos, Giourtis
• Γλώσσα: Greek
• Έκδοση: 2021
• Θέματα: Remittances; Poverty; Developing countries; Εμβάσματα; Φτώχεια; Αναπτυσσόμενες χώρες

In this dissertation we examine the impact of steadily growing remittance flows to the developing world. We analyze the latest data sets available on international remittances, inequality, and poverty while we making use of a panel data set including 89 selected developing countries in the period of 1996-2017. Fixed effects estimation model with clustered standard errors is adopted to estimate the poverty effects of remittances. Our estimations indicate a negative but statistically insignificant impact of remittances on each of the three poverty measures (poverty headcount, poverty gap, poverty severity). Accounting for the possible endogeneity of international remittances, by adopting a two-stage least squares as well as a three-stage least squares estimations, our results indicate that a 10% increase of remittances as a share of GDP will lead to 1.9% decline in poverty headcount ratio and 2% decline in poverty gap and severity, all at equal levels of significance. A separate analysis has been undertaken for 60 developing countries that have 2% or more share of remittances in GDP. Our results even after accounting for the endogeneity issue, are more reliable while the impact of remittances on poverty alleviation found to be stronger and more significant.