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Are Remittances an Effective Mechanism for Development? Evidence from Tajikistan, 1999--2007

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  • Cynthia Buckley
  • Erin Trouth Hofmann

Abstract

In many remittance-receiving countries, evidence linking remittances to household economic stability and investment is limited. Using three cross-sectional national surveys (1999, 2003, 2007) we compare remittance-receiving to non-remittance households in Tajikistan, a country highly dependent on remittances. Exploring household perceptions of financial security, wealth and entrepreneurial activity, across a period of rising remittance reliance, we find that households receiving remittances are not more economically stabile, wealthier, or entrepreneurial than non-remittance households. Findings highlight the importance of conceptualising remittances as a process influenced by the developmental contexts within receiving countries, and question previous assumptions concerning development pathways.

Suggested Citation

  • Cynthia Buckley & Erin Trouth Hofmann, 2012. "Are Remittances an Effective Mechanism for Development? Evidence from Tajikistan, 1999--2007," Journal of Development Studies, Taylor & Francis Journals, vol. 48(8), pages 1121-1138, February.
    • Handle: RePEc:taf:jdevst:v:48:y:2012:i:8:p:1121-1138
    DOI: 10.1080/00220388.2012.688816
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    References listed on IDEAS

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    1. Samuel Munzele Maimbo & Dilip Ratha, 2005. "Remittances: Development Impact and Future Prospects," World Bank Publications - Books, The World Bank Group, number 7339.
    2. Ralitza Dimova & Gil S. Epstein & Ira N. Gang, 2015. "Migration, Transfers and Child Labor," Review of Development Economics, Wiley Blackwell, vol. 19(3), pages 735-747, August.
    3. World Bank, 2005. "Tajikistan : Poverty Assessment Update," World Bank Publications - Reports 8518, The World Bank Group.
    4. World Bank, 2006. "Tajikistan Policy Note : Enhancing the Development Impact of Remittances," World Bank Publications - Reports 19457, The World Bank Group.
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    1. Isil R. Yavuz & Berrak Bahadir, 2021. "Remittances, Ethnic Diversity, and Entrepreneurship in Developing Countries," Working Papers 2110, Florida International University, Department of Economics.
    2. Tamar Khitarishvili, 2016. "Gender Dimensions of Inequality in the Countries of Central Asia, South Caucasus, and Western CIS," Economics Working Paper Archive wp_858, Levy Economics Institute.
    3. Dambar Uprety and Kevin Sylwester, 2017. "The Effect of Remittances upon Skilled Emigration: An Empirical Study," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 42(2), pages 1-15, June.
    4. Le Thanh Tung, 2018. "The Impact Of Remittances On Domestic Investment In Developing Countries: Fresh Evidence From The Asia-Pacific Region," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 9(2).
    5. Gloria Clarissa O. Dzeha, 2016. "The decipher, theory or empirics: a review of remittance studies," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 5(2), pages 113-134.
    6. Ira N. Gang & Kseniia Gatskova & John Landon-Lane & Myeong-Su Yun, 2018. "Vulnerability to Poverty: Tajikistan During and After the Global Financial Crisis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(3), pages 925-951, August.
    7. Gnangnon, Sèna Kimm, 2023. "Duration of membership in the world trade organization and investment-oriented remittances inflows," The Quarterly Review of Economics and Finance, Elsevier, vol. 88(C), pages 258-277.
    8. R. Isil Yavuz & Berrak Bahadir, 2022. "Remittances, ethnic diversity, and entrepreneurship in developing countries," Small Business Economics, Springer, vol. 58(4), pages 1931-1952, April.
    9. Wim Naudé & Henri Bezuidenhout, 2014. "Migrant Remittances Provide Resilience Against Disasters in Africa," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 42(1), pages 79-90, March.
    10. Gnangnon, Sèna Kimm, 2022. "Duration of WTO Membership and Investment-Oriented Remittances Flows," EconStor Preprints 251274, ZBW - Leibniz Information Centre for Economics.
    11. Hackl, Andreas, 2018. "Mobility equity in a globalized world: Reducing inequalities in the sustainable development agenda," World Development, Elsevier, vol. 112(C), pages 150-162.
    12. Ralitza Dimova & Gil S. Epstein & Ira N. Gang, 2015. "Migration, Transfers and Child Labor," Review of Development Economics, Wiley Blackwell, vol. 19(3), pages 735-747, August.
    13. Shashi Kant Chaudhary, PhD, 2022. "Remittances, Economic Growth and Investment Nexus: Evidence from Nepal," NRB Economic Review, Nepal Rastra Bank, Economic Research Department, vol. 34(1), pages 1-23, April.
    14. Kristina Meier, 2014. "Low-Skilled Labor Migration in Tajikistan: Determinants and Effects on Expenditure Patterns," Discussion Papers of DIW Berlin 1433, DIW Berlin, German Institute for Economic Research.

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