Impact of international remittances on income inequality- the case of the Asian countries

Title
Impact of international remittances on income inequality- the case of the Asian countries
Authors
MUSABAEVA, Aisalkyn
Issue Date
2013
Publisher
KDI School of Public Policy and Management
Abstract
Migration in Asia is one of the sore points, because it brings significant consequences to the social and economic development of the countries. One of the results of migration is remittances. With increasing of the migration flows, the international remittances are increased dramatically. This research explores the impact of remittances on income inequality in Asian countries using annual data from World Bank, statistical committees and national banks of each country from 1970 until 2010. According to the previous researches conducted on this issue, the impact of remittances on inequality remains unclear. This relationship depends on several factors: 1) who receive remittances; 2) migration history; 3) methodological approach used (remittances considered as exogenous factor or remittances considered as a substitute for domestic earnings). In this paper will be used panel data model with 23 Asian countries and period of 40 years from 1970 until 2010. Number of observations is 920. The result after running the panel data fixed effects model showed that in the higher income economies the Gini coefficient will decrease more than in the lower income economies with the given increase in the share of remittances.
URI
http://archives.kdischool.ac.kr/handle/11125/12224
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Master's Thesis (2013)


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