Comparative effects of migrants' remittances on composition of recipient household income in two small, island economies

Brown, Richard P. C. and Leeves, Gareth (2011) Comparative effects of migrants' remittances on composition of recipient household income in two small, island economies. Applied Economics, 43 27: 3965-3976. doi:10.1080/00036841003742611

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Author Brown, Richard P. C.
Leeves, Gareth
Title Comparative effects of migrants' remittances on composition of recipient household income in two small, island economies
Journal name Applied Economics   Check publisher's open access policy
ISSN 0003-6846
1466-4283
Publication date 2011-11-01
Year available 2010
Sub-type Article (original research)
DOI 10.1080/00036841003742611
Volume 43
Issue 27
Start page 3965
End page 3976
Total pages 12
Place of publication Abingdon, United Kingdom
Publisher Routledge
Collection year 2011
Language eng
Abstract We use unique household survey data from Fiji and Tonga to estimate and compare the combined impact of migration and remittances on the composition of household income. A two-step methodology is followed employing a migration prediction model followed by the estimation of a Three Stage Least Squares (3SLS) remittances and income equation system. We find that remittances contribute to growth in productive capital and entrepreneurial activity in the longer-established migrant economy, but have yet to impact on business activity in the more recently remittances-oriented economy, despite it having a more developed, market economy. In the latter case, remittances seem more linked to supporting consumption through supplementing low wage income. 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. © 2011 Informa plc
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes First Published on: 04 December 2010

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2011 Collection
School of Economics Publications
 
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Created: Fri, 11 Mar 2011, 03:37:06 EST by Alys Hohnen on behalf of School of Economics