IDEAS home Printed from https://ideas.repec.org/a/sae/jfasei/v7y2025i1p25-46.html
   My bibliography  Save this article

Do Remittances Mitigate Income Disparity in China and India? Evidence from Structural Break Regression Models

Author

Listed:
  • Sakthivel P
  • Durairaj Kumarasamy
  • Vamsi Krushna A

Abstract

Over the last few decades, India and China have received significant remittances from abroad. However, there is no clear evidence that these remittances positively or negatively impact income distribution. Therefore, this study explores the role of remittances in income inequality in China and India. This study also investigates the factors determining income inequality in two major emerging market economies. Using annual data from 1982 to 2021, this study applies structural break regression models for empirical investigation. The result reveals that remittances positively impacted income inequality until the early 2000s but are statistically insignificant. However, remittances have had a reducing effect on inequalities in recent years for both economies. The results also show that financial development, per capita income and the internationalisation of trade positively contribute to inequality in both countries. In contrast, FDI reduces inequality in China and increases in India. Given the varying impact of remittances on income inequality, this study offers several policy implications for China and India. JEl Classification: E22, E25, F21, F43

Suggested Citation

  • Sakthivel P & Durairaj Kumarasamy & Vamsi Krushna A, 2025. "Do Remittances Mitigate Income Disparity in China and India? Evidence from Structural Break Regression Models," Journal of Asian Economic Integration, , vol. 7(1), pages 25-46, April.
    • Handle: RePEc:sae:jfasei:v:7:y:2025:i:1:p:25-46
    DOI: 10.1177/26316846251316942
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/26316846251316942
    Download Restriction: no
    File URL: https://libkey.io/10.1177/26316846251316942?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jfasei:v:7:y:2025:i:1:p:25-46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.