Do Remittances Reduce Poverty in Developing Countries?

Ciupureanu, Costin-Alexandru; Roman, Mihai Daniel

doi:10.1007/978-3-319-24267-5_13

Cited by 5 publications

(5 citation statements)

References 9 publications

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“…And this would also seem to be the case for Romania, given that migrants from there settling abroad tend to start sending remittances to family members back home, with these truly contributing to an enhancement of the living conditions there (Cantore & Cali, 2015;EC, 2017), with poverty being impacted upon, and income inequality reduced. Analyses of various panel data (UN, 2011;Ciupureanu & Roman, 2016;Peković, 2017) reveal that a 10% increase in remittances reduce the headcount as regards poverty by as much as 5.3% (or as little as 3.1%). Moreover, remittances reduce the inequality present within given localities, as well as between urban and rural areas (Zamfir, Mocanu, Militaru & Parciog, 2010).…”

Section: Discussionmentioning

confidence: 99%

Exploring the links between out-migration and social development in Romania. A Development Region-based approach

Mitrică¹,

Damian²,

Mocanu³

et al. 2019

Eur. XXI

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In-migration into the EU has become an important issue in recent decades, as an important component accounting for population changes in Europe. In contrast, it was after the fall of communism that out-migration grew into a major – but also relatively new – phenomenon affecting Romania. Especially after 2002, in which year Schengen visa requirements were waived, rapid growth in circular migration was encouraged; with a further migratory wave ensuing after 2007, due to free access to the European labour market. Against that background, work detailed in this paper has sought to provide insights into specific features of the process of out-migration, as this relates to social development. Use was made of statistical data available at NUTS 2 (Development Regions) level, as provided by the National Institute of Statistics; as well as various further data and information from both the World Bank and EUROSTAT. To achieve the objective specified above, efforts have been made to select indicators shown to offer a broad and accurate picture of both out-migration (via an out-migration rate indicator) and levels of social developmental (via a Socially Disadvantaged Index). The effects of what mainly proves to be temporary out-migration are very important, as they drive temporary loss of human capital, with Romania appearing in statistics among the main sources of labour-migration flows.

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Section: Discussionmentioning

confidence: 99%

Exploring the links between out-migration and social development in Romania. A Development Region-based approach

Mitrică¹,

Damian²,

Mocanu³

et al. 2019

Eur. XXI

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“…Demographic developments-arising both from changes in fertility and mortality as well as migration patterns-can have a profound effect on the economy and welfare. An ageing and shrinking population is generally associated with lower growth (European Commission 2018, IMF 2019) 1 , while remittances of emigrants help reduce poverty and inequality (Ciupureanu and Roman 2016;Pal et al 2021), and boost investment (Léon-Ledesma and Piracha 2004, Mereuta 2006).…”

Section: Box 1 Demography and Migrationmentioning

confidence: 99%

Romania

2022

IMF Staff Country Reports

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“…Empirical studies on the issue are abundant and appear to have quite varied results (Kousar et al, 2019;Musakwa and Odhiambo, 2020). Nonetheless, a general consensus is that remittances may decrease the possibility of households remaining poor (Hashmi et al, 2008;Ciupureanu and Roman, 2016;Pradhan and Mahesh, 2016;Imran et al, 2018;Ali et al, 2019;Mehedintu et al, 2019;Arapi-Gjini et al, 2020). More specifically, this paper is in line with a small group of studies in the remittances and poverty literature, which pay close attention to the potential issue of endogeneity of remittances.…”

Section: Related Literaturementioning

confidence: 99%

Do international remittances promote poverty alleviation? Evidence from low- and middle-income countries

Saptono

Mahmud

Lei

2022

IZA Journal of Development and Migration

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Unlike previous empirical studies, this paper investigates the contemporaneous and lagged impacts of international remittances on poverty alleviation using data for 65 low- and- middle-income countries from 2002 to 2016. By using two-stage least square (2SLS) regression analysis, this study establishes that, in general, international remittances per gross domestic product (GDP) significantly mitigate poverty. On average, a 10-percentage-point increase in remittances will lead to a similar decrease in the poverty headcount ratio at USD 1.90 a day, a 4.8-percentage-point decline in poverty gap ratio at USD 1.90 a day, and a 6.7-percentage-point reduction in the poverty gap ratio at USD 3.20 a day. This result remains robust with the inclusion of political factors in the model. Moreover, the system-generalized method of moments (SGMM) estimations found that the contemporaneous effects of international remittances are much more substantial than their lagged effects. This indicates that most of the poverty alleviation role of remittances is contributed by its direct effect on increasing the wealth index of recipient households rather than the spillover effect on other members of the community. Therefore, we strongly suggest that efforts be made to improve the remittance infrastructures, especially in recipient countries, and the development of cooperatives in the enclaves of migrant workers to spread the beneficial effects of remittances to all members of society.

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Do Remittances Reduce Poverty in Developing Countries?

Cited by 5 publications

References 9 publications

Exploring the links between out-migration and social development in Romania. A Development Region-based approach

Exploring the links between out-migration and social development in Romania. A Development Region-based approach

Romania

Do international remittances promote poverty alleviation? Evidence from low- and middle-income countries

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