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Projection of the Effects of the COVID-19 Pandemic on the Welfare of Remittance-Dependent Households in the Philippines

Author

Listed:
  • Enerelt Murakami

    (JICA Ogata Sadako Research Institute for Peace and Development)

  • Satoshi Shimizutani

    (JICA Ogata Sadako Research Institute for Peace and Development)

  • Eiji Yamada

    (JICA Ogata Sadako Research Institute for Peace and Development)

Abstract

The Coronavirus Disease 2019 (COVID-19) is inevitably affecting remittance-dependent countries through economic downturns in the destination countries, and restrictions on travel and sending remittances to their home country. We explore the potential impacts of the COVID-19 pandemic on the welfare of remittance-dependent households using a dataset collected in the Philippines prior to the outbreak. First, we confirm that remittances are associated with welfare of households, particularly for those whose head is male or lower educated. Then, we use the revision of the 2020 GDP projections before and after the COVID-19 crisis to gauge potential impacts on households caused by the pandemic. We find that remittance inflow will decrease by 14–20% and household spending per capita will decline by 1–2% (food expenditure per capita by 2–3%) in one year as a result of the pandemic.

Suggested Citation

  • Enerelt Murakami & Satoshi Shimizutani & Eiji Yamada, 2021. "Projection of the Effects of the COVID-19 Pandemic on the Welfare of Remittance-Dependent Households in the Philippines," Economics of Disasters and Climate Change, Springer, vol. 5(1), pages 97-110, April.
    • Handle: RePEc:spr:ediscc:v:5:y:2021:i:1:d:10.1007_s41885-020-00078-9
    DOI: 10.1007/s41885-020-00078-9
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    References listed on IDEAS

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    1. Dean Yang, 2011. "Migrant Remittances," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 129-152, Summer.
    2. David McKenzie & John Gibson & Steven Stillman, 2010. "How Important Is Selection? Experimental vs. Non-Experimental Measures of the Income Gains from Migration," Journal of the European Economic Association, MIT Press, vol. 8(4), pages 913-945, June.
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    4. World Bank, 2020. "Global Economic Prospects, January 2020," World Bank Publications - Books, The World Bank Group, number 33044.
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    Cited by:

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    2. Iuliia Pinkovetskaia & Diego Felipe Arbelaez Campillo & Magda Julissa Rojas Bahamon, 2022. "Households income in 2021: influence of Covid-19 pandemic," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 14(2), pages 541-559, June.
    3. Nakamura, Nobuyuki & Suzuki, Aya, 2021. "COVID-19 and the intentions to migrate from developing countries: Evidence from online search activities in Southeast Asia," Journal of Asian Economics, Elsevier, vol. 76(C).
    4. Chan Mono Oum & Gazi M. Hassan & Mark J. Holmes, 2022. "Do Remittances Increase Household Indebtedness: Evidence from a Cambodian Household Survey," Working Papers in Economics 22/02, University of Waikato.
    5. Nakamura, Nobuyuki & Suzuki, Aya, 2022. "How Altruism Works during a Pandemic: Examining the Roles of Financial Support and Degrees of Individual Altruism on International Remittance," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322073, Agricultural and Applied Economics Association.
    6. Satoshi Shimizutani & Eiji Yamada, 2021. "Resilience against the pandemic: The impact of COVID-19 on migration and household welfare in Tajikistan," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-20, September.
    7. Pinkovetskaia Iuliia, 2022. "Impact of Covid-19 pandemic on household income: results of a survey of the economically active population," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 32(1), pages 43-57, March.

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