Effects of remittances on household expenditure inequality and education expenditures: evidence from the Philippines

Murata, Akira (2011) Effects of remittances on household expenditure inequality and education expenditures: evidence from the Philippines. Doctoral thesis (DPhil), University of Sussex.

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Abstract

This thesis examines the economic effects of both international and domestic
remittances on Filipino households. The thesis investigates three main research
questions: (1) “Which household characteristics affect the probability and the size of
domestic and international remittances migrant households received?”; (2) “How do
these two sources of remittances Filipino households received affect welfare inequality
at the household level?”; (3) “How do the remittances affect the recipient household’s
expenditure patterns, especially educational expenditures?” The data mainly used for
the thesis come from the nationally representative Family Income and Expenditure
Survey (FIES) in the Philippines during the period of 1985-2006.

With regard to the first question, the thesis finds that the levels of receiving
international and domestic remittances are mutually related and reveals that there is a
displacement effect of remittances from abroad on those from within the country.
Furthermore, the thesis also revealed that several explanatory factors such as the welfare
level, the heads’ characteristics, the job-related factors, and the regional disparities are
significant to determine both the probability and the size of receiving the remittances.

Regarding the second question, the thesis shows that the receipt of international
remittances could significantly contribute to an improvement in Filipino households’
livelihoods at any welfare level and that it would cause expenditure inequality between
Filipino households to widen over time. In contrast, the receipt of remittances from
within the Philippines did not exert a significant impact on improving the welfare.

As for the last question, the thesis finds that the receipt of remittances from abroad
would increase the budget share for education as well as its absolute value. This result
supports the idea that international remittances could contribute to the future Philippine
economic growth via increase in human capital investment if the country sort out the
issues on brain drain of educated migrants’ children.

Item Type: Thesis (Doctoral)
Schools and Departments: School of Global Studies > Geography
Subjects: D History General and Old World > DS History of Asia > DS520 Southeast Asia > DS651 Philippines
H Social Sciences > HG Finance > HG0179 Personal finance
H Social Sciences > HJ Public Finance > HJ7461 Expenditures. Government spending
Depositing User: Library Cataloguing
Date Deposited: 18 Oct 2011 08:03
Last Modified: 21 Aug 2015 11:44
URI: http://sro.sussex.ac.uk/id/eprint/7412

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