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Remittance receipts and allocation: a study of three African countries

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  • Mark Musumba
  • Mjelde
  • Adusumilli

Abstract

Remittances may influence household expenditures, poverty rates, development and investments in the receiving country. Using World Bank survey data from Ethiopia, Uganda and Kenya, the influence of remitters' and recipients' characteristics on remittance amounts and allocation is examined. Effects of the remitter-receiver characteristics on remittance amounts are generally similar between countries. Such similarities imply a potential similar effect of policies in these countries. Age, household income, frequency of communication, family relations with remitter and country the recipient resided in influence remittance allocation. Recipients in Ethiopia and Uganda are more likely to allocate remittance towards savings than those in Kenya.

Suggested Citation

  • Mark Musumba & Mjelde & Adusumilli, 2015. "Remittance receipts and allocation: a study of three African countries," Applied Economics, Taylor & Francis Journals, vol. 47(59), pages 6375-6389, December.
    • Handle: RePEc:taf:applec:v:47:y:2015:i:59:p:6375-6389
    DOI: 10.1080/00036846.2015.1071472
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    References listed on IDEAS

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    1. Steven F. Koch, 2010. "Fractional Multinomial Response Models With An Application To Expenditure Shares," Working Papers 201021, University of Pretoria, Department of Economics.
    2. World Bank, 2011. "Migration and Remittances Factbook 2011 : Second Edition," World Bank Publications - Books, The World Bank Group, number 2522.
    3. Randazzo, Teresa & Piracha, Matloob, 2014. "Remittances and Household Expenditure Behaviour in Senegal," IZA Discussion Papers 8106, Institute of Labor Economics (IZA).
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    Cited by:

    1. Randazzo, Teresa & Piracha, Matloob, 2019. "Remittances and household expenditure behaviour: Evidence from Senegal∗," Economic Modelling, Elsevier, vol. 79(C), pages 141-153.
    2. Olatunji Abdul Shobande & Oladimeji Tomiwa Shodipe, 2019. "Remittances and Real Exchange Rate: Latest Evidence from Cochrane Orcutt Econometric Model," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(2), pages 166-172, June.

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