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Poverty Effects of Remittances: Evidence in CEE Countries
Organizations and Markets in Emerging Economies Pub Date : 2020-05-29 , DOI: 10.15388/omee.2020.11.24
Mindaugas Butkus , Kristina Matuzevičiūtė , Kotryna Raupytė

The countries with a transition economy in the EU have experienced rapid growth of labour migration and remittance flows during the last two decades. Remittances are improving household economic welfare, so it is important to evaluate how these financial flows may affect the poverty situation, as CEE countries are facing levels of poverty and inequality way above the EU average. The paper examines the impact of remittances on poverty, using the panel of seven CEE countries considered as advanced transition economies over the period of 2006-2015. Pooled OLS, fixed effects, random effects, and 3-stage least squared estimators are used to estimate the poverty effects of remittances. The results show that remittances have a significant impact on three out of four poverty measures. Taking into consideration the endogeneity problem, it is estimated that a 10-per cent increase in remittances to GDP ratio will lead to a decline, on average, by 5.5 per cent in poverty headcount, and also by 3.7 per cent in poverty gap and 0.6 per cent in the risk of poverty. These results can be important for defining the policy measures on providing more efficient management of remittances.

中文翻译:

汇款的贫困影响:中东欧国家的证据

在过去的二十年中,欧盟的经济转型国家经历了劳动力移民和汇款流量的快速增长。汇款正在改善家庭经济福利,因此重要的是评估这些资金流如何影响贫困状况,因为中欧和东欧国家面临的贫困和不平等程度高于欧盟平均水平。本文使用七个被视为先进转轨经济体的中东欧国家(2006-2015年)组成的小组,研究了汇款对贫困的影响。汇总的OLS,固定效应,随机效应和三阶段最小二乘估计器用于估计汇款的贫困效应。结果表明,汇款对四分之三的贫困衡量标准有重大影响。考虑到内生性问题,据估计,汇款占国内生产总值的比率增加10%,平均会使贫困人口减少5.5%,使贫困差距减少3.7%,使贫困风险减少0.6% 。这些结果对于定义有关提供更有效的汇款管理的政策措施非常重要。
更新日期:2020-05-29
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