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
Show allCollapse