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Is Remittance Changing the Consumption Patterns of Migrant Families?

Author

Listed:
  • Horas Djulius

    (Faculty of Economics and Business, Universitas Pasundan, Indonesia, Jalan Tamansari No. 6-8, Bandung, 40116. Indonesia)

  • Nurul Qomariah

    (Faculty of Economics and Business, Universitas Pasundan, Indonesia, Jalan Tamansari No. 6-8, Bandung, 40116. Indonesia)

  • Iwan Sidharta

    (Pasundan School of Economic, Bandung, Indonesia)

Abstract

The existence of migrants abroad can increase family income and create capital, which can be used in productive economic activities, through their remittances. This presumption needs to be examined from an economic perspective to determine whether differences exist in their consumption patterns, which result in the productive behavior of migrants upon their return from abroad. To test this hypothesis, a survey was conducted among migrant families in Cirebon Regency, Indonesia. In-depth interviews and observations were conducted to determine the changes in household expenses. Results suggest that migrants and their families consume more, lack concern about human investment, and exert minimal effort toward capital accumulation.

Suggested Citation

  • Horas Djulius & Nurul Qomariah & Iwan Sidharta, 2017. "Is Remittance Changing the Consumption Patterns of Migrant Families?," Business, Management and Economics Research, Academic Research Publishing Group, vol. 3(7), pages 78-84, 07-2017.
    • Handle: RePEc:arp:bmerar:2017:p:78-84
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    References listed on IDEAS

    as
    1. Démurger, Sylvie & Wang, Xiaoqian, 2016. "Remittances and expenditure patterns of the left behinds in rural China," China Economic Review, Elsevier, vol. 37(C), pages 177-190.
    2. Catalina Amuedo-Dorantes, 2006. "Remittances and their microeconomic impacts: evidence from Latin America," Proceedings, Federal Reserve Bank of Dallas, pages 187-197.
    3. Lykke E. Andersen & Bent Jesper Christensen, 2009. "The Static and Dynamic Benefits of Migration and Remittances in Nicaragua," Development Research Working Paper Series 05/2009, Institute for Advanced Development Studies.
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