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The consumption-enhancing effect of remittances: Evidence from Kosovo

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  • Laetitia Duval
  • François-Charles Wolff

Abstract

In this paper, we study the effect of remittances on the living standard of families living in Kosovo using detailed data conducted in 2010 on a sample of 4,000 households. Specifically, we focus on the impact of these transfers on welfare proxied by per capita consumption expenditure at various locations of the consumption distribution. Drawing on quantile regressions, we find that remittances significantly improve the living standard of the recipient households. The benefit of remittances is much higher among households characterized by low levels of consumption, especially when the possible endogeneity of remittances is taken into account in the estimation. Finally, we show that the positive impact of remittances on consumption has remained constant between 2000 and 2010.

Suggested Citation

  • Laetitia Duval & François-Charles Wolff, 2013. "The consumption-enhancing effect of remittances: Evidence from Kosovo," wiiw Balkan Observatory Working Papers 107, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:bpaper:107
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    Cited by:

    1. Adelowokan, Oluwaseyi & Adesoye, Adesola & Akpa, Emeka & Maku, Olukayode, 2020. "Remittances, Foreign Aid and Private Consumption in Sub-Saharan Africa (SSA): A System GMM Estimation," MPRA Paper 98362, University Library of Munich, Germany.
    2. Braha, Kushtrim & Cupak, Andrej & Qineti, Artan & Pokrivcak, Jan, 2018. "Food Demand System in Transition Economies: Evidence from Kosovo," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 272050, European Association of Agricultural Economists.
    3. Braha, Kushtrim & Cupák, Andrej & Pokrivčák, Ján & Qineti, Artan & Rizov, Marian, 2017. "Economic analysis of the link between diet quality and health: Evidence from Kosovo," Economics & Human Biology, Elsevier, vol. 27(PA), pages 261-274.
    4. Braha, Kushtrim & Rajcaniova, Miroslava & Qineti, Artan, 2015. "Spatial Price Transmission and Food Security: The case of Kosovo," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207843, Italian Association of Agricultural and Applied Economics (AIEAA).

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    More about this item

    Keywords

    Remittances; consumption; poverty; inequality; Kosovo;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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