Remittances, Consumption and Investment in Ghana

Adams, Richard H., Jr.; Cuecuecha, Alfredo; Page, John

Remittances, Consumption and Investment in Ghana

Autores

Adams, Richard H., Jr.

Cuecuecha, Alfredo

Page, John

Editor

World Bank, Washington, DC

Descripción

This paper uses a new, nationally-representative household survey from Ghana to analyze within a rigorous econometric framework how the receipt of internal remittances (from within Ghana) and international remittances (from African or other countries) affects the marginal spending behavior of households on a broad range of consumption and investment goods, including food, education and housing. Contrary to other studies, which find that remittances are spent disproportionately on consumption (food and consumer goods/durables) or investment goods (education and housing), the findings show that households receiving remittances in Ghana do not spend more at the margin on food, education and housing than households with similar income levels and characteristics that do not receive remittances. When the analysis controls for endogeneity and selection bias, the findings show that any differences in the marginal spending behavior between remittance-receiving and non-receiving households are explained completely by the observed and unobserved characteristics of households. Households in Ghana treat remittances just like any other source of income, and there are no changes in marginal spending patterns for households with the receipt of remittance income.

Palabras clave

ACCOUNTING, AGRICULTURAL ECONOMICS, AMOUNT OF REMITTANCES, CAPITA REMITTANCES, CLUSTERS, COLLEGE EDUCATION, CONSUMER, CONSUMER GOODS, CONTRIBUTION, CONTRIBUTION OF REMITTANCES, COUNTRIES OF ORIGIN, CULTURAL CHANGE, CURRENCY, CURRENCY CRISIS, DATA ON REMITTANCES, DEVELOPING COUNTRIES, DEVELOPMENT IMPACT OF REMITTANCES, DISPOSABLE INCOME, DUMMY VARIABLE, DUMMY VARIABLES, DURABLE, DURABLE GOODS, DURABLES, EARNINGS, ECONOMIC CHARACTERISTICS, ECONOMIC DEVELOPMENT, ECONOMIC POLICY, ECONOMIC SHOCKS, EFFECT OF REMITTANCES, EFFECTS OF REMITTANCES, EQUIPMENT, ETHNIC GROUPS, EXCHANGE RATE, EXPENDITURE, EXPENDITURES, FAMILY BUDGETS, FAMILY SIZE, FAMILY TIES, FARM INCOME, FUNGIBLE, GENDER, GLOBAL DEVELOPMENT, GLOBAL DEVELOPMENT FINANCE, HOUSEHOLD APPLIANCES, HOUSEHOLD EXPENDITURE, HOUSEHOLD EXPENDITURES, HOUSEHOLD INCOME, HOUSEHOLD INCOMES, HOUSEHOLD LEVEL, HOUSEHOLD SIZE, HOUSEHOLD SURVEYS, HUMAN CAPITAL, IMMIGRANT, IMPACT OF MIGRATION, IMPACT OF REMITTANCES, INCOME FLOWS, INCOME LEVELS, INEQUALITY, INFORMAL CHANNELS, INSTRUMENT, INTERNAL MIGRANTS, INTERNAL MIGRATION, INTERNATIONAL BANK, INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE, INTERNATIONAL MIGRANTS, INTERNATIONAL MIGRATION, INTERNATIONAL REMITTANCES, INVESTING, INVESTMENT BEHAVIOR, INVESTMENT DECISIONS, LABOR FORCE, LABOR MARKET, LABOUR FORCE, LARGE TRANSFERS, LEVEL OF POVERTY, LIVING CONDITIONS, LIVING STANDARDS, LOC, LOW INCOME, LOW-INCOME, LOW-INCOME COUNTRY, MEAT, MICROENTERPRISES, MIDDLE EAST, MIGRANT, MIGRANTS, MONETARY FUND, MONIES, NUMBER OF CHILDREN, NUMBER OF HOUSEHOLDS, PHYSICAL CAPITAL, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, PRIMARY EDUCATION, PRIMARY SCHOOL, PROBABILITY, PROGRESS, RECEIPT, REGIONAL DUMMIES, REGIONAL DUMMY, REGISTRATION FEES, REGRESSION ANALYSIS, RELIGIOUS GROUP, RELIGIOUS GROUPS, REMITTANCE, REMITTANCE FLOWS, REMITTANCE RECEIVING, REMITTANCE RECEIVING HOUSEHOLDS, REMITTANCE-RECEIVING HOUSEHOLDS, REMITTANCES, RENTAL PAYMENTS, RESPECT, RETURN, RETURNS, ROLE OF REMITTANCES, RURAL AREAS, SAVINGS, SECONDARY EDUCATION, SECONDARY SCHOOL, SECONDARY SCHOOL EDUCATION, SENIOR, SEX, SOCIAL PROGRAMS, SOURCE OF INCOME, SOURCES OF INCOME, TELEVISION, UNIVERSITY EDUCATION, WAGE