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Do remittances affect healthcare expenditure?: evidence from Kenya

Author

Listed:
  • Bharati Basu

    (Central Michigan University)

  • Aranya Biswas

    (Central Michigan University)

Abstract

Using the World Bank's data for migration and remittances in Kenya, this paper examines the impact of remittances on household healthcare expenditures. A Tobit analysis together with an instrumental variable approach reveals a significant positive effect of remittances on healthcare expenditures. The effect is bigger for internal and within-Africa migration compared to out-of-Africa migration. Households with a higher volume of remittances are more sensitive to this positive income effect compared to those with a smaller amount of remittance income. These insights may help Kenya and other lower-middle-income countries in incentivizing remittances and restructuring the healthcare system to achieve their goal of Universal Health Care.

Suggested Citation

  • Bharati Basu & Aranya Biswas, 2024. "Do remittances affect healthcare expenditure?: evidence from Kenya," Economics Bulletin, AccessEcon, vol. 44(3), pages 1034-1048.
    • Handle: RePEc:ebl:ecbull:eb-24-00144
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Remittances; Health Care Expenditure; Kenya;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • I1 - Health, Education, and Welfare - - Health

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