Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Remittances Matter: Understanding from Four States of India


Affiliations
1 Ph.D. Scholar, Gokhale Institute of Politics and Economics, Pune 411004, Maharashtra, India
     

   Subscribe/Renew Journal


International remittances are important to the recipient households. They increase the recipient family’s income and change the expenditure patterns. Overall, the expatriate income helps to substantially alleviate the poverty, decrease unemployment, and improves health and education outcomes for the recipient households. The current paper examines the importance of remittances to the family through their utilization aspects of receipt analogs. The Reserve Bank of India (RBI) surveyed data of selected nine districts from four states namely Kerala, Gujarat, Maharashtra, and Punjab, has been used for the study. The analysis concludes that remittances are more powerful in rural areas than urban areas. Similarly, types of transfer receipts play a crucial role in the utilization aspects of remittances. The findings show that the remittances are mainly used for family maintenance, followed by health and educational purposes.

Keywords

No keywords
Subscription Login to verify subscription
User
Notifications
Font Size

  • Ali, I. and R.B. Bhagat (2016), Emigration and Impact of Utilization of Remittances at Household Level in India: A Propensity Score Matching Approach, Social Science Spectrum, 2(1): 8-19.

  • Adams, R. (2004), Remittances and Poverty in Guatemala, World Bank Policy Research Working Paper, 3418, September, Washington D.C.

  • Adams, R. and J. Page (2005), Do International Migration and Remittances Reduce Poverty in Developing Countries? World Development, 33(10): 1645-1669.

  • Amuedo-Dorantes, C. and S. Pozo (2011), New Evidence on the Role of Remittances on Healthcare Expenditures by Mexican Households, Review of Economics of the Household, 9(1): 69-98.

  • Tumbe, Chinmay (2011), Remittance in India: Facts and Issue, Indian Institute of Management (IIMB), Working Paper NO. 33.

  • Chintamani, B.G. (2017), A Study on Remittances and Development Outcomes Evidence from India, Global Research Forum on Diaspora and Transnationalism (GRFDT), Series 32, 3(8): 5-16, August.

  • Cardona-Sosa, L.M., C.A. Medina-Durango, C. Medina and L. Cardona-Sosa (2006), Migration as a Safety Net and Effects of Remittances on Household Consumption: The Case of Colombia, Borradores de Economía, No. 414.

  • Dey, S. (2015), Impact of Remittances on Poverty at Origin: A Study on Rural Households in India using Covariate Balancing Propensity Score Matching, Migration and Development, 4(2): 185-199.

  • Dhasmana, Indivjal (2019), Ranked 129, India Marginally Improves in Human Development Index in 2018, Business Standard, December 10.

  • Government of India (2007), Economic Survey 2016-2017, Jan., New Delhi.

  • Guha, P. (2011), Measuring International Remittances in India Concept and Empirics, Published by National Institute of Advanced Studies (NIAS) Bangalore and Amsterdam Institute for Social Science Research (AISSR), ProGlo Working Paper, No. 1.

  • ----------- (2013), Migrants' Private Giving and Development: Diasporic Influences on Development in Central Gujarat, India (No. id: 5594).

  • Guha, P. and D. Biplab (2013), District-Level Survey of International Migration and Reverse Flows in Central Gujarat, India, Anand and Khed, National Institute of Advanced Studies (NIAS) Bangalore and Amsterdam Institute for Social Science Research (AISSR), ProGlo Working Paper, No. 7.

  • Huay, C.S., J. Winterton, Y. Bani and B.T. Matemilola (2019), Do Remittances Promote Human Development? Empirical Evidence from Developing Countries, International Journal of Social Economics, 46(10): 1173-1185.

  • Irdam, D. (2012), The Impact of Remittances on Human Development: A Quantitative Analysis and Policy Implications, Sociology, 5(1): 74-95.

  • Kannan, K.P. and K.S. Hari (2002), Kerala’s Gulf Connection: Emigration, Remittances and Their Macroeconomic Impact 1972-2000, Working Paper No. 328, CDS, Kerala, March.

  • Kapur, D. (2003), Remittances: The New Development Mantra? Paper prepared for the G-24 Technical Group Meeting, 15–16 September, United Nations, New York.

  • Kaur, A.P. (2018), International Migration and Impact of Remittances on Left Behind Wives: A Case Study of the Doaba Region of Punjab, In Migration, Gender and Care Economy (pp. 103-123). Routledge India.

  • Krishnan, Sharma (2010), The Impact of Remittance on Economic Insecurity, Journal of Human Development and Capabilities, 11(4): 555-577.

  • Mahapatro, S., A. Bailey, K.S. James and I. Hutter (2015), Remittances and Household Expenditure Patterns in India and Selected States, Migration and Development, 6(1): 83-101.

  • Mahapatro, S.R. (2018), International Migration, Remittances and Household Development in India: A Comparative Perspective of Northern and Southern Regions, Social Science Spectrum, 4(2): 94-105.

  • Ministry of Statistics and Programme Implementation (2007), India-Employment, Unemployment and Migration Survey: NSS 64th Round, Government of India, New Delhi.

  • Mohanty, S.K., M. Dubey and J.K. Parida (2014), Economic Well-being and Spending Behavior of Households in India: Does Remittances Matter?, Migration and Development, 3(1): 38-53.

  • Musumba, Mark, James W. Mjelde and Naveen C. Adusumilli (2015), Remittance Receipts and Allocation: A Study of Three African Countries, Applied Economics, 47(59): 6375-6389.

  • Orozco, M., L. Lowell and J. Schneider (2006), Gender Specific Determinants of Remittances: Differences in Structure and Motivation, Report to the World Bank Gender and Development Group, Poverty Reduction and Economic Management Network, June Institute for the Study of International Migration, Georgetown University, Washington D.C.

  • Parida, J.K., S.K. Mohanty and K.R. Raman (2015), Remittances, Household Expenditure and Investment in Rural India: Evidence from NSSO Data, Indian Economic Review, 50(1): 79-104.

  • Reserve Bank of India (RBI) (2012), Survey of Private Remittances to Indian Household with NonResident Account: Release of Survey Data, RBI Press Release, August 2012.

  • ----------- (2013), Remittance from Overseas Indians: Mode of Transfer, Transaction Cost and Time Taken, RBI Monthly Bulletin, December 2013.

  • ----------- (2018), Globalizing People: India’s Inward Remittances, RBI Monthly Bulletin, November 2018.

  • Ratha, D. (2003), Workers’ Remittances: An Important and Stable Source of External Development Finance, in Global Development Finance 2003, (Washington: World Bank).

  • Ratha, D. (2004), Why Should We Care about Workers’ Remittances? and What Should We Do?, Senior Economist, World Bank, This is a revised version of a note presented at the Expert Meeting of the Global Commission on International Migration, Geneva, January 20-2004.

  • ----------- (2007), Leveraging Remittance for Development, Policy Brief, June, Institute of Migration Policy, Washington D.C.

  • ----------- (2013), The Impacts of Remittance on Economic Growth and Poverty Reduction, Migration Policy Institute, MPI, NO 8, September.

  • Sasikumar, S.K. and Zakir Hussain (2007), Migration, Remittance and Development: Lesson from India, V.V. Giri National Labour Institute, NLI Research Studies Series, No. 083/2007.

  • Jha, Shikha, Guntur Sugiyarto and Carlos Vargas-Silva (2010), The Global Crises and the Impact on

  • Remittance to Developing Asia, Global Economic Review, 39(1): 59-82.

  • Siddique, A., E.A. Selvanathan and S. Selvanathan (2012), Remittances and Economic Growth: Empirical Evidence from Bangladesh, India and Sri Lanka, Journal of Development Studies, 48(8): 1045-1062.

  • Sil, M. (2011), International Remittances and Its Impact on Households and Village Development: A Comparative Study of Gujarat and Kerala States, India,

  • Singh, Shashank Vikram Pratap (2020), Analysis of HDI 2019 – An Index for Enlarging People’s Choices, Market Express, Retrieved November 29, 2019 (http://www.marketexpress.in/2020/02/human-development-report-hdi-2019-an-index-forenlarging-peoples-choices.html).

  • UNDP (2019), Human Development Report 2019 (2019th Ed.), United Nations, https://www.unilibrary. org/content/books/9789210044967

  • Valero Gil, J.N. (2009), Remittances and the Household's Expenditures on Health, Journal of Business Strategies, 26(1): 119-140.

  • World Bank (2006), Global Economic Prospect, 2006, World Bank, Washington, D.C. DOI: 10.1596/978-0-8213-6344-7.

  • Yang, D. and H. Choi (2007), Are Remittances Insurance? Evidence from Rainfall Shocks in the Philippines, The World Bank Economic Review, 21(2): 219-248.

  • Zachariah, K.C. and S.I. Rajan (2012), Kerala's Gulf Connection, 1998-2011: Economic and Social Impact of Migration, Hyderabad: Orient Blackswan.


Abstract Views: 510

PDF Views: 0




  • Remittances Matter: Understanding from Four States of India

Abstract Views: 510  |  PDF Views: 0

Authors

Bhupesh Gopal Chintamani
Ph.D. Scholar, Gokhale Institute of Politics and Economics, Pune 411004, Maharashtra, India

Abstract


International remittances are important to the recipient households. They increase the recipient family’s income and change the expenditure patterns. Overall, the expatriate income helps to substantially alleviate the poverty, decrease unemployment, and improves health and education outcomes for the recipient households. The current paper examines the importance of remittances to the family through their utilization aspects of receipt analogs. The Reserve Bank of India (RBI) surveyed data of selected nine districts from four states namely Kerala, Gujarat, Maharashtra, and Punjab, has been used for the study. The analysis concludes that remittances are more powerful in rural areas than urban areas. Similarly, types of transfer receipts play a crucial role in the utilization aspects of remittances. The findings show that the remittances are mainly used for family maintenance, followed by health and educational purposes.

Keywords


No keywords

References





DOI: https://doi.org/10.21648/arthavij%2F2022%2Fv64%2Fi1%2F212215