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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:International migration, remittances and poverty alleviation in Ethiopia
Authors:Assaminew, EmertaISNI
Getachew Ahmed
Kassahun Aberra
Tewodros Makonnen
Periodical:Ethiopian Journal of Development Research (ISSN 0378-0813)
Notes:biblio. refs., ills.
Geographic terms:Ethiopia
Northeast Africa
urban households
poverty reduction
Economics, Commerce
Emigration and immigration
Emigrant remittances
External link:https://doi.org/10.4314/ejdr.v33i1.68616
Abstract:The article explores the impact of international remittances on the Ethiopian economy as well as the livelihoods and welfare of households. A simple dynamic econometric model, the Vector Autoregressive (VAR) model, was used to assess the impact of international remittances on absorption, spending and output. The authors used a binary outcome model to test whether remittances have an impact on the welfare of households. The study makes use of macroeconomic data and data from an Ethiopian urban household survey. It was found that remittance shocks positively affect macroeconomic variables; the effect remained volatile in the very first periods after the shock. However, the impacts tend to sustain in the years after the fifth period. Moreover, through the positive (but inelastic) relationship between growth and poverty, private remittance inflows have an important implication for poverty in Ethiopia. International remittances significantly reduced the poverty incidence among the urban households in the country. It is also found that female-headed households are more likely to use remittance more effectively than male-headed households. App., bibliogr., sum. [Journal abstract]