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Remittances and Household Expenditure in Rural Nigeria

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  • Olowa, Olatomide W.
  • Awoyemi, Timothy T.

Abstract

This paper examines the relationship between remittances and household expenditures in rural Nigeria by using the 2004 living standard survey to analyse how the receipt of domestic remittances (from within Nigeria) and foreign remittances (from abroad) affects the marginal spending behaviour of households on various consumption and investment goods. Expenditures were categorized into six namely food, education, housing, health, consumer goods and others. Results show that households receiving remittances spend less at the margin on consumption of food, consumer goods and durables than do households receiving no remittances. The analysis further shows that a large amount of remittance money goes into education. At the margin, households receiving domestic and foreign remittances spend 45 and 58 percent more, respectively, on education than do households with no remittances. Like other studies, this paper finds that remittance-receiving households spend more at the margin on housing.

Suggested Citation

  • Olowa, Olatomide W. & Awoyemi, Timothy T., 2011. "Remittances and Household Expenditure in Rural Nigeria," Journal of Rural Economics and Development, University of Ibadan, Department of Agricultural Economics, vol. 20, pages 1-14, June.
    • Handle: RePEc:ags:ngjred:206866
    DOI: 10.22004/ag.econ.206866
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    References listed on IDEAS

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    1. Adams Jr., Richard H. & Cuecuecha, Alfredo, 2010. "Remittances, Household Expenditure and Investment in Guatemala," World Development, Elsevier, vol. 38(11), pages 1626-1641, November.
    2. Adams, Richard H., Jr., 1991. "The effects of international remittances on poverty, inequality, and development in rural Egypt:," Research reports 86, International Food Policy Research Institute (IFPRI).
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    4. Osili, Una Okonkwo, 2004. "Migrants and Housing Investments: Theory and Evidence from Nigeria," Economic Development and Cultural Change, University of Chicago Press, vol. 52(4), pages 821-849, July.
    5. Samuel Munzele Maimbo & Dilip Ratha, 2005. "Remittances: Development Impact and Future Prospects," World Bank Publications - Books, The World Bank Group, number 7339.
    6. Edwards, Alejandra Cox & Ureta, Manuelita, 2003. "International migration, remittances, and schooling: evidence from El Salvador," Journal of Development Economics, Elsevier, vol. 72(2), pages 429-461, December.
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    Cited by:

    1. Ibrahim A. Adekunle & Tolulope O. Williams & Olatunde J. Omokanmi & Serifat O. Onayemi, 2020. "Mediating roles of institutions in the remittance-growth relationship: evidence from Nigeria," Research Africa Network Working Papers 20/063, Research Africa Network (RAN).
    2. Ibrahim A. Adekunle & Tolulope O. Williams & Olatunde J. Omokanmi & Serifat O. Onayemi, 2020. "Mediating roles of institutions in the remittance-growth relationship: evidence from Nigeria," Working Papers of the African Governance and Development Institute. 20/063, African Governance and Development Institute..
    3. Adelowokan, Oluwaseyi & Adesoye, Adesola & Akpa, Emeka & Maku, Olukayode, 2020. "Remittances, Foreign Aid and Private Consumption in Sub-Saharan Africa (SSA): A System GMM Estimation," MPRA Paper 98362, University Library of Munich, Germany.
    4. Akpa, Emeka, 2018. "Private Remittances Received and Household Consumption in Ghana (1980-2016): An ARDL Analysis with Structural Breaks," MPRA Paper 87103, University Library of Munich, Germany.
    5. Ibrahim A. Adekunle & Tolulope O. Williams & Olatunde J. Omokanmi & Serifat O. Onayemi, 2020. "Mediating roles of institutions in the remittance-growth relationship: evidence from Nigeria," Working Papers 20/063, European Xtramile Centre of African Studies (EXCAS).
    6. Ibrahim Ayoade Adekunle & Tolulope Oyakhilome Williams & Olatunde Julius Omokanmi & Serifat Olukorede Onayemi, 2020. "The Mediating Role Of Institutions In The Remittance–Growth Relationship: Evidence From Nigeria," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 65(227), pages 7-30, October –.

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