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Do remittances support consumption during crisis? Evidence from Kosovo

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  • Laetitia Duval
  • François-Charles Wolff

Abstract

This paper focuses on the effect of remittances on per capita consumption over time in a context of conflict, war-to-peace transition and crisis. We use two household surveys from Kosovo with unique timing, one collected immediately after the civil war in 2000 and the other during the economic crisis in 2010. This territory, in which the tension among ethnic groups is the focus of international concern, is one of the top remittance-receiving countries in the world. We examine the effect of remittances not only at the average level of consumption, but also at various parts of the distribution of consumption using quantile regressions. We find that remittances alleviate poverty by enhancing the consumption level of the most vulnerable households, and the positive effect of remittances on consumption has remained constant between 2000 and 2010. This result may be connected with the resilience of remittances.

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  • Laetitia Duval & François-Charles Wolff, 2016. "Do remittances support consumption during crisis? Evidence from Kosovo," Oxford Development Studies, Taylor & Francis Journals, vol. 44(4), pages 479-492, October.
    • Handle: RePEc:taf:oxdevs:v:44:y:2016:i:4:p:479-492
    DOI: 10.1080/13600818.2016.1156080
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    1. Abdoul Hadirou Yoda & Achille Augustin Diendere, 2024. "Empirical evidence on the relationship between migrants' remittances and private investment in Burkina Faso: A dynamic simultaneous equation model," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(2), pages 1468-1488, March.
    2. Arian Tahiri & Faruk Ahmeti & Burim Prenaj, 2023. "The Effect of International Migrant Remittances on Employment Patterns: Evidence from Kosovo," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 126-142.
    3. Florije Govori & Amant Fejzullahu, 2020. "External Financial Flows and GDP Growth in Kosovo," Journal of Developing Societies, , vol. 36(1), pages 56-76, March.

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