Advertisement

Impact of Remittances on Poverty in India: Empirical Evidence

  • Rashmi Banga
  • Pritish Kumar Sahu
Chapter

Abstract

Remittances have been an important source of external funding for India. The span of Indian diaspora stretches across the globe in all continents. The Ministry of Overseas Indian Affairs has registered the presence of non-resident Indians (NRIs) in 180 of the 183 countries of the world. The numbers have varied from just two in Lebanon to almost a million in the USA. Estimated at over 30 million, India ranks second to Chinese diaspora. The growing number of migrants from India has added to the remittance inflow over the years. Data in this regard reveals that, even though the remittance flows to the Indian economy during the 1980s remained more or less stable, the postreform period from 1991 onwards has experienced a significant increase in remittances. There has been an annual average trend growth of 16 % during the period 1990 to 2008. In 2008, after the outbreak of economic crisis, India reported 34 % growth over 2007.

Keywords

Capita Income Recipient Country Granger Causality Test Poverty Indicator Personal Disposable Income 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Notes

Acknowledgement

This chapter is based on UNCTAD-India Study on ‘Impact of Remittances on Poverty in Developing Countries’, published by UNCTAD, 2011.

References

  1. Adams R, Jr (2005a) Remittances, selection bias and poverty in Guatemala. Unpublished Manuscript. World Bank, Washington, DCGoogle Scholar
  2. Adams R, Page J (2005) Do international migration and remittances reduce poverty in developing countries? World Dev 33(10):1645–1669CrossRefGoogle Scholar
  3. Adelman I, Edward Taylor J (1990) Is structural adjustment with a human face possible? The case of Mexico. J Dev Stud 26(3):387–407CrossRefGoogle Scholar
  4. Barjas A, Chami R, Fullenkamp C, Gapen M, Montiel P (2009) Do workers’ remittances promote economic growth?. IMF Working Paper 153/2009Google Scholar
  5. Bouhga-Hagbe J (2004) A theory of workers remittance with an application to Morocco. IMF working paper no 04/194, Washington, DCGoogle Scholar
  6. Campos R, de Palomo L (2002) Invirtamos en Educación para Desafiar el Crecimiento Económico y la Pobreza. Fundación Salvadoreña para el Desarrollo Económico y Social, San Salvador, MayGoogle Scholar
  7. Chami R, Fullenkamp C, Jahjah S (2005) Are immigrant remittance flows a source of capital for development. IMF Staff Pap, Palgrave Macmillan 52(1):55–81Google Scholar
  8. Chimhowu AO, Piesse J, Pinder C (2005) The socio-economic impact of remittances on poverty reduction. In: Maimbo SM, Ratha D (eds) Remittances: development, impact and future prospects. The World Bank, Washington, DCGoogle Scholar
  9. Cox-Edwards A, Rodríguez Oreggia E (2009) Remittance and labor force participation in mexico: an analysis using propensity score matching. World Develop 37(5):1004–1014Google Scholar
  10. Drinkwater S, P Levine, E Lotti (2003) The labour market effects of remittances. FLOWENLA discussion paper no. 6. Hamburg Institute of International Economics, HamburgGoogle Scholar
  11. Durand J, Parrado EA, Massey DS (1996) Migradollars and development: a reconsideration of the Mexican case. Int Migr Rev 30(2):423–444CrossRefGoogle Scholar
  12. Ekanayake EM, Halkides M (2008) Do remittances and foreign direct investment promote growth? Evidence from developing countries. J Int Bus Econ 8(1)Google Scholar
  13. Faini R (2002) Development, trade, and migration. Revue d’Économie et du Développement. In: Proceedings from the ABCDE Europe conference, 1–2, pp 85–116Google Scholar
  14. Faini R (2003) The Brain drain: an unmitigated blessing? Centro Studi Luca d’Agliano Development Studies working paper no. 173Google Scholar
  15. Frank R (2001) Philippine Town Plies a road to Riches via Monthly Stipends: but are Pozorrubians turning into Slakers as relatives abroad send home cash? Wall Street Journal, 22 MayGoogle Scholar
  16. Funkhouser E (1992) Migration from Nicaragua: some recent evidence. World Develop 20(8):1209–1218CrossRefGoogle Scholar
  17. Gustafsson B, Makonnen N (1993) Poverty and remittances in Lesotho. J Afr Econ 2:49–73Google Scholar
  18. Hildebrandt N, McKenzie D (2005) The effects of migration on child health in Mexico. Economica 6(1):257–289Google Scholar
  19. IMF (2005) World economic outlook. International Monetary Fund, Washington, DCGoogle Scholar
  20. Kannan KP, Hari KS (2002) Kerala’s gulf connection emigration, remittances and their macroeconomic impact 1972–2000. Working paper no. 328, CDS, KeralaGoogle Scholar
  21. Lopez Cordova JE (2005) Globalization, migration, and development: the role of Mexican migrant remittances. Economía 6(1):217–256CrossRefGoogle Scholar
  22. McCormick B, Wahba J (2001) Overseas work experiences, saving and entrepreneurship amongst return migrants to LCDs. Scott J Polit Econ 48:164–178CrossRefGoogle Scholar
  23. Pant B (2008) Mobilizing remittances for productive use: a policy-oriented approach. Nepal Rastra Bank, working paper serial number: NRB/WP/4, Dec 2008Google Scholar
  24. Pindyck RS, Rubinfeld DL (1998) Econometric models and economic forecasts, 4th edn. McGraw Hill Book Co., New YorkGoogle Scholar
  25. Rajan RG, Subramanyam A (2005) What undermines growth impact on growth? IMF working paper no. 05/126, Washington, DCGoogle Scholar
  26. Rapoport H, Docquier F (2006) The economics of migrants’ remittances. In: Kolm SC, Ythier JM (eds) Handbook of the economics of giving, altruism and reciprocity: volume 2. North-Holland, Amsterdam, pp 1135–1199Google Scholar
  27. Ratha D (2003) Workers’ Remittances: an important and stable source of external development finance. In: Global development finance 2003. World Bank, Washington, DCGoogle Scholar
  28. Ravallion M (1997) Can high-inequality developing countries escape absolute poverty? Econ Lett 56:51–57CrossRefGoogle Scholar
  29. Ravallion M, Chen S (1997) What can new survey data tell us about recent changes in distribution and poverty? World Bank Econ Rev 11(2):357–382CrossRefGoogle Scholar
  30. Rodriguez ER, Tiongson ER (2001) Temporary migration overseas and household labour supply: evidence from urban Philippines. Int Migr Rev 35:3Google Scholar
  31. Sabates-Wheeler R, Sabates R, Castaldo A (2005) Tackling poverty-migration linkages: evidence from Ghana and Egypt. Working Paper WP-T14, Migration DRC. University of Sussex, UKGoogle Scholar
  32. Spatafora N (2005) Two current issues facing developing countries, Chapter Two. In: World economic outlook: a survey by the staff of the International Monetary FundGoogle Scholar
  33. Taylor JE, Mora J, Adams R (2005) Remittances, inequality and poverty: evidence from Rural Mexico. Unpublished manuscript. University of California, DavisGoogle Scholar
  34. Uruci E, GedeshI I (2003) Remittances management in Albania. CeSPI working paper, 5/2003Google Scholar
  35. Woodruff C, Zenteno R (2001) Remittances and micro-enterprises in Mexico. In: Global economic prospects. World Bank, Washington, DCGoogle Scholar
  36. World Bank (2006) Global economic prospects: economic implications and migration. World Bank, Washington, DCGoogle Scholar
  37. Yang D (2004) International migration, human capital, and entrepreneurship: evidence from Philippine migrants’ exchange rate shocks. Working papers 531, Research Seminar in International Economics, University of MichiganGoogle Scholar

Copyright information

© Springer India 2013

Authors and Affiliations

  1. 1.Unit of Economic Cooperation and Integration Among Developing Countries, UNCTADGenevaSwitzerland
  2. 2.Faculty of Business and LawMultimedia UniversityMelakaMalaysia

Personalised recommendations