Impacts of International Migration and Remittances on Source Country Household Incomes in Small Island States: Fiji and Tonga

Brown, Richard P. C. and Leeves, Gareth (2007). Impacts of International Migration and Remittances on Source Country Household Incomes in Small Island States: Fiji and Tonga. Discussion Paper ESA Working Paper No. 07-13, The Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division.

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Author Brown, Richard P. C.
Leeves, Gareth
Title Impacts of International Migration and Remittances on Source Country Household Incomes in Small Island States: Fiji and Tonga
School, Department or Centre The Food and Agriculture Organization of the United Nations
Institution Agricultural Development Economics Division
Series Discussion Paper
Report Number ESA Working Paper No. 07-13
Publication date 2007-02
Publisher The University of Queensland
Total pages 28
Subject 140202 Economic Development and Growth
140210 International Economics and International Finance
140219 Welfare Economics
140301 Cross-Sectional Analysis
Abstract/Summary We use original 2005 survey data from Fiji and Tonga on remittances and household income to estimate the combined impact of migration and remittances on the composition of household income. A two-stage methodology is followed. A variable for the predicted number of migrants in each household is generated to control for selectivity in migration. This variable is then used in a 3SLS remittances and income equation system. In neither country do we observe significant impacts on agricultural cash income, but, in relation to other income sources, including subsistence agriculture, wages and non-agricultural business activities, some significant and different effects are found, both positive and negative. These findings suggest that the duration and intensity of remittance-driven migration, and the structure of economic activity within a community are important in understanding the influences of migration and remittances on household resource allocation and production decisions and on the community's economic transformation.
Keyword Fiji
Tonga
migration
remittances
household income
income equation system
impact

 
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Created: Mon, 22 Oct 2007, 14:16:30 EST by Belinda Weaver on behalf of School of Economics