Remittance inflows and poverty Nexus in Botswana: a multivariate approach

Musakwa, Mercy T.; Odhiambo, Nicholas M.

doi:10.1080/20430795.2020.1777786

Cited by 9 publications

(11 citation statements)

References 20 publications

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“…Among the few studies that examined the causality between poverty and remittances, the studies are divided between those that found a bidirectional causality (Abdulnasser and Gazi‐Salah 2014; Gaaliche and Gaaliche 2014; Sanchez‐Loor and Zambrano‐Monserrate 2015; Muhammad et al . 2016; Musakwa and Odhiambo 2020); unidirectional causality (Sanchez‐Loor and Zambrano‐Monserrate 2015; Musakwa and Odhiambo 2020); and no causality (Muhammad et al . 2016; Sanchez‐Loor and Zambrano‐Monserrate 2015).…”

Section: A Review Of Related Literaturementioning

confidence: 99%

“…Household consumption expenditure is measured as a percentage of gross domestic product (GDP). This poverty proxy was used in some studies as a poverty measure (see, Rehman and Shahbaz 2014;Magombeyi and Odhiambo 2017;Kaidi et al 2018;Musakwa and Odhiambo 2020). Household consumption expenditure was selected in the study to capture the income dimen-sion of poverty.…”

Section: Definition Of Variablesmentioning

confidence: 99%

“…Musakwa and Odhiambo (2020) investigated the causal relationship between remittances and poverty in Botswana using time series data from 1980 to 2017. In the study, two poverty proxieswere used, namely household consumption expenditure and infant mortality rate.…”

Section: A Review Of Related Literaturementioning

confidence: 99%

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The causal relationship between remittance and poverty in South Africa: A multivariate approach

Musakwa¹,

Odhiambo²

2021

Int Social Sci J

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The main objective of this study is to investigate the causality between international remittance inflows and poverty in South Africa using time series data from 1980 to 2017. The study was motivated by the increasing role of remittances in poverty reduction and human development on the one hand, and the burgeoning inflow of remittances on the other hand. Since 1998, South Africa remittance inflows have shown a more or less upward trend. As an example, in 1998, the country recorded an increase in remittance inflows of 18.5 per cent and later maintained a steady increase in remittance inflows with an average increase of 25.3 per cent during the period 1999 ‐2017. Using a multivariate Granger‐causality model, our results show that there is a distinct unidirectional causal flow from poverty to remittances in the short term when the infant mortality rate is used as a proxy for poverty. However, when household consumption expenditure is used as a proxy, no causality is found to prevail in both the short and the long term. Policy implications are discussed.

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Section: A Review Of Related Literaturementioning

confidence: 99%

Section: Definition Of Variablesmentioning

confidence: 99%

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The causal relationship between remittance and poverty in South Africa: A multivariate approach

Musakwa¹,

Odhiambo²

2021

Int Social Sci J

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“…One of the aspects that caught their attention was with respect to its impact on poverty alleviation, considering that most migrant workers originate from poor households living in rural areas. The prominent view emerging from the literature on this issue is that increased remittance flows significantly mitigate poverty rates in the home country (Hatemi-J and Uddin, 2013;Satti et al, 2015;Pradhan and Mahesh, 2016;Mehedintu et al, 2019;Musakwa and Odhiambo, 2020). It can be said that these findings, which researchers generally agree upon, are in line with the "migration optimism" concept, which holds that migration is one of the main instruments in promoting economic development in the home countries (de Haas, 2007).…”

Section: Introductionmentioning

confidence: 88%

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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“…Musakwa and Odhiambo [65] use time-series data from 1980 to 2017 to conclude that remittances play an important role in driving poverty reduction in Botswana, irrespective of whether poverty is measured household consumption expenditure or infant mortality rate [16,17] demonstrate that remittances are countercyclical and serve as a safety net for households with migrants abroad. On the other hand, [66] suggests that remittances allow households to absorb shocks and cope with unexpected expenses.…”

Section: Literature Reviewmentioning

confidence: 99%

Cash transfers, climate shocks vulnerability and households’ resilience in Togo

Sodokin

Nyatefe

2021

Discov Sustain

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This paper uses data from the survey of basic wellbeing indicators (2015) to investigate climate-related risk perceived impact on the household’s living standard in Togo. We investigate the data using a subjective approach with a Probit model and a Propensity Score Matching Method. For the majority of households in the sample, the results suggest, on the one hand, a significant impact of climate-related risk on their living standards. On the other hand, the estimation results show that income from activities increases the resilience and reduction of Togo households' climate-related effects. Finally, remittances increase the households' ability to be less climate vulnerable and play a significant role in the household’s resilience building. In terms of public policies, the results imply that a broader consultation and strategy are needed to reduce the consequences of climate related-risks on households in Togo.

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Remittance inflows and poverty Nexus in Botswana: a multivariate approach

Cited by 9 publications

References 20 publications

The causal relationship between remittance and poverty in South Africa: A multivariate approach

The causal relationship between remittance and poverty in South Africa: A multivariate approach

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

Cash transfers, climate shocks vulnerability and households’ resilience in Togo

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