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    International Remittances and Poverty Reduction: Evidence from Asian Developing Countries

    Yoshino, Naoyuki; Taghizadeh-Hesary, Farhad; Otsuka, Miyu | July 2017
    Abstract
    International remittances represent the second most important source of external funding for developing countries after foreign direct investment (FDI). This paper examines the impact of international remittances on poverty reduction using the panel data of 10 Asian developing countries. In terms of the dependent variables, this paper sets three poverty indicators: poverty headcount ratio, poverty gap ratio, and poverty severity ratio. Results show that international remittances have a statistically significant impact on the poverty gap ratio and poverty severity ratio under the random effect model of ordinary least squares (OLS) estimates. A 1% increase in international remittances as a percentage of GDP can lead to a 22.6% decline in the poverty gap ratio and a 16.0% decline in the poverty severity ratio in the sample of 10Asian developing countries from 1981 to 2014. In addition, results show that a per capita GDP increase and trade openness can decrease poverty measures, and higher inflation rates may be one of the causes of the poverty.
    Citation
    Yoshino, Naoyuki; Taghizadeh-Hesary, Farhad; Otsuka, Miyu. 2017. International Remittances and Poverty Reduction: Evidence from Asian Developing Countries. © Asian Development Bank Institute. http://hdl.handle.net/11540/7175.
    Keywords
    Development Indicators
    Environmental Indicators
    Economic Indicators
    Educational Indicators
    Demographic Indicators
    Health Indicators
    Disadvantaged Groups
    Low Income Groups
    Socially Disadvantaged Children
    Rural Conditions
    Rural Development
    Social Conditions
    Urban Development
    Urban Sociology
    Project finance
    Resources evaluation
    Needs assessment
    Cost benefit analysis
    Alleviating Poverty
    Anti-Poverty
    Extreme Poverty
    Fight Against Poverty
    Global Poverty
    Health Aspects Of Poverty
    Indicators Of Poverty
    Participatory Poverty Assessment
    Poverty Eradication
    Poverty Analysis
    Poverty In Developing Countries
    Poverty Reduction Efforts
    Urban Poverty
    Results-Based Monitoring And Evaluation
    Project Evaluation & Review Technique
    Performance Evaluation
    Impact Evaluation Reports
    Evaluation Criteria
    Poor
    Economic forecasting
    Health expectancy
    Social groups
    Political participation
    Distribution of income
    Inequality of income
    Developing countries
    Rural community development
    Mass society
    Social change
    Social policy
    Social stability
    Population
    Sustainable development
    Peasantry
    Urban policy
    Urban renewal
    Results mapping
    Risk assessment
    Participatory monitoring and evaluation
    Cost effectiveness
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    Citable URI
    http://hdl.handle.net/11540/7175
    Metadata
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    Author
    Yoshino, Naoyuki
    Taghizadeh-Hesary, Farhad
    Otsuka, Miyu
    Theme
    Poverty
    Evaluation
    Labor Migration
     
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise