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International Remittances and Private Interhousehold Transfers: Exploring the Links

Journal article
Authors Yonas Alem
L. Andersson
Published in European Journal of Development Research
Volume 31
Issue 4
Pages 902-928
ISSN 0957-8811
Publication year 2019
Published at Department of Economics
Pages 902-928
Language en
Keywords Interhousehold transfers, International remittances, Panel data, Shocks, Urban Ethiopia
Subject categories Economics and Business


We investigate the effect of international remittances from migrated family members on informal interhousehold transfers—an issue that has received limited attention in the literature. Using rich panel data from urban Ethiopia spanning 15 years, we show that receiving international remittances increases the value of private domestic interhousehold transfers, whereas receiving domestic remittances does not have any effect. We also show that the transfers sent respond to shocks to a great extent. Our results provide new evidence on the trickle-down effects of international remittances, effects important to consider when analyzing the impact of international remittances on household outcomes in recipient countries. © 2019, European Association of Development Research and Training Institutes (EADI).

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