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Do Migrant Remittances Affect Household Purchases of Physical Investments and Durable Goods? Evidence for Kenya

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  • Farai Jena

    (Department of Economics, University of Sussex, UK)

Abstract

This paper investigates the impact of remittances on household decisions to purchase physical investments and durable goods in Kenya using household survey data. Remittances are found to be endogenous in the durable goods case and their effects are estimated using bivariate and IV probit models. In the physical investments case, remittances are found to be exogenous and remittance effects are estimated using univariate probit models. The evidence obtained is supportive of remittances having a positive and significant effect on the decisions by households to purchase physical investments and durable goods.

Suggested Citation

  • Farai Jena, 2015. "Do Migrant Remittances Affect Household Purchases of Physical Investments and Durable Goods? Evidence for Kenya," Working Paper Series 7915, Department of Economics, University of Sussex Business School.
    • Handle: RePEc:sus:susewp:7915
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    File URL: http://www.sussex.ac.uk/economics/documents/wps-79-2015.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    migrant remittances; household expenditure; physical investments; durable goods;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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