The Link between International Remittances and Private Interhousehold Transfers

Berhe Mekonnen Beyene
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Berhe Mekonnen Beyene: Dept. of Economics, University of Oslo, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway

No 14/2012, Memorandum from Oslo University, Department of Economics

Abstract: The paper studies the link between international remittances and interhousehold transfers. Using a simple insurance model, it is shown that households transfer a large fraction of the remittance they receive from relatives abroad to other households. The effect of remittances on interhousehold transfers is empirically investigated using an urban household survey from Ethiopia. Consistent with the prediction of the model, remittance has a strong positive effect on the amount of transfer given, controlling for total household income and other covariates.

Keywords: international remittances; interhousehold transfers; mutual insurance; Ethiopia (search for similar items in EconPapers)
JEL-codes: D19 F24 I30 R20 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2012-03-15
New Economics Papers: this item is included in nep-afr, nep-ias and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:osloec:2012_014

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