Remittances, consumption and investment in Ghana
By R. H. Adams, Alfredo Cuecuecha, J. Page. 2008
131 citations recorded by the source corpus.
This paper uses a new, nationally-representative household survey from Ghana to analyze within a rigorous econometric framework how the receipt of internal remittances (from within Ghana) and international remittances (from African or other countries) affects the marginal spending behavior of households on a broad range of consumption and investment goods, including food, education and housing. Contrary to other studies, which find that remittances are spent disproportionately on consumption (food and consumer goods/durables) or investment goods (education and housing), the findings show that households receiving remittances in Ghana do not spend more at the margin on food, education and housing than households with similar income levels and characteristics that do not receive remittances. When the analysis controls for endogeneity and selection bias, the findings show that any differences in the marginal spending behavior between remittance-receiving and non-receiving households are explained completely by the observed and unobserved characteristics of households. Households in Ghana treat remittances just like any other source of income, and there are no changes in marginal spending patterns for households with the receipt of remittance income.
Subfields: Economics and Econometrics, Safety Research, Sociology and Political Science
View Paper: https://www.semanticscholar.org/paper/146cbdb0d6f027e1eb799fb23a78db38b429cd40
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Citations in the corpus
- Impact of Migration on Economic and Social Development: A Review of Evidence and Emerging Issues (2011, background): “There is a growing body of evidence suggesting that the income from remittances is disproportionally spent on education and health rather than everyday consumption (Adams 2005, Adams et al. 2008, World Bank 2006b, p. 126, Valero-Gil 2008; see Nagarajan 2009 for South Africa).”
- Africa's Money in Africa (2013, result): “Similar finding has been made in Ghana, Haiti and Mexico that households receiving remittance invest more in education (Lopez-Cordova, 2005; Adams et al., 2008; Bredl, 2011).”