Assessing the impact of remittances: a case study of the Philippines
Date
2011
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Publisher
University of Delaware
Abstract
In recent years, there has been a plethora of literature written on
remittances. While disagreements exist on the exact impact of remittances, nevertheless, the overwhelming view paints that of a positive picture. According to the World Bank, the amount of remittance received for 2010 amount to $325 billion. This is particularly the case in middle and low income countries. In this paper, I examine the impact of remittances on education, health, and inequality using the Annual Poverty Indicator Survey from the Philippines. This paper uses the Philippines as the country of choice since ten percent of its GDP is comprised of remittances. The analysis is done using regional/provincial fixed-effects, Gini decomposition, and ratios of different expenditure per capita percentiles. The results indicate a positive impact of remittances on education and health. However, the effect of remittances on inequality is not conclusive, and suggests additional research.