Remittance inflow and smallholder farming practices. The case of Moldova

SSRN Electronic Journal, 2000

This paper uses a unique representative household budget survey from the Asian Development Bank to analyze the impact of international migration and remittances on crop income of rural farmers in the Kyrgyz Republic. Unlike other studies we allow the impact of remittances to be different for farmers with different land size and test whether reduced labor availability is more relevant for permanent than for seasonal migrants. We find that losing family members has strong negative effect on crop income, but only for permanent migrants. Remittances partially compensate for this, but their positive impact decreases with farm size.

China Agricultural Economic Review, 2009

Purpose -The objective of this paper is to evaluate the impact of remittance income on rural households in China. Design/methodology/approach -Using data from a large survey of farming households in three Chinese provinces, the impacts of remittances and other types of income on consumption, production expenditures is evaluated. The econometric models used in this study include logit, tobit and ordinary least squares models. Findings -It is found that remittances increase nondurable consumption, but not as much as local wages and that there is no difference in the impact on agricultural production spending between remittance and local wages. The large majority of remittances are reported by the households of non-permanent migrants, suggesting that the fear of losing land allocations has a strong impact on migration decision. Originality/value -The paper uses a large data set from three distinct provinces of China and is among the first to investigate the different types of remittance and their impacts on both consumption and production activities of Chinese rural households.

2014

Nepal is one of the highest remittance receiving countries in the world, in percentage of gross domestic product (GDP). Remittances are not only defining household consumption and investment patterns, but are also transforming the structure and dynamics of the country’s overall economy. However, very little is known about its impact on the agriculture sector, which accounts for one-third of the country’s GDP. Using the most recent cross-section national level household data, this paper analyzes the effects of migration and remittances on agriculture yield. It shows two important results: (i) migration negatively affects agriculture yield, and (ii) remittance-receiving agricultural households have not demonstrated improvements in agriculture productivity, despite increased household incomes. It points to two important trends: (i) migration adversely affects agriculture yield by inducing a labor shortage in the sector, and (ii) the remittance-receiving households are not investing suc...

2022

e purpose of this research is to examine the impact of rural-urban labor migration and remittances on rural agricultural productivity. A rigorous random selection process was used to pick 480 households from cross-sectional data. For this investigation, both primary and secondary data were used. Stata version 16 was used to examine both qualitative and quantitative data using descriptive (mean, standard deviation, and percentages) and econometric (three-stage least square technique) analyses. According to the descriptive data, the majority of respondents used their remittances for consumption, to acquire agricultural inputs, and to pay back their debts and tax payments. According to econometric studies, rural-urban migration has little influence on agricultural productivity. Remittances, cultivated land, livestock ownership, and extension services, on the other hand, have a positive and significant effect on agricultural productivity. In a nutshell, the link between migration, remittances, and agricultural output in agrarian and rural families is remarkable. Agriculture is the major source of income and mostly handles the liquidity issue. Agriculture production in the study region is labor intensive, and it is influenced by the amount of effort utilized in production as well as the socioeconomic characteristics of the household. As a result, it must address the major conundrum of agricultural productivity, particularly rural-urban migration and remittances. Address a knowledge gap, begin activities, and develop and implement multiple initiatives by various responsible stakeholders that are essential for the research topic. Furthermore, agricultural extension service delivery should be improved by timely recruiting, frequent agent training, and appropriate logistics.

Asia-Pacific Social Science Review, 2010

This paper considers the present issues surrounding the role of workers remittances and its contribution/effect on economic growth and development. In particular, this paper examines how such remittances have been able to spur development and growth in the countryside. As a case study, the paper focuses on the regions of the Philippines. The Philippines is one of the countries in the world with a long history of sending workers abroad. In 2007, the Philippines received approximately US$15Bn of remittances, more than 12% of its GDP. It ranks as the 3 rd largest recipient of remittances in the world, after India and Mexico. Along this line, the paper looks into the following areas: (a) linkages between remittances and microfinance; (b) tracing the contribution of remittances to countryside development; and (c) the relationship between worker remittances and structural reform policies. We hypothesize that workers' remittances have not been properly utilized into productive and investment uses in the Philippines. There are strong anecdotal evidences that show that most of these remittances are being used to fund conspicuous consumption. Hence, we would like to find ways to harness these resources to funding development needs of the country. We find that remittances contribute to national growth; however, it also makes worse income inequalities among regions.

2004

This study investigated the impact of remittances on the output of arable of remittance and non receiving farm households in South Eastern Nigeria. A multi-stage random sampling and purposive sampling technique was used in choosing the sample. The cost route technique was used in data collection. Data collected using structured questionnaire and interview schedules were analyzed using such statistical tools as Z test, regression analysis and Chow's test statistic. The result of data analyses revealed that there were significant differences in age, farm size, output and income between the remittance receiving and non-receiving households. The remittance receiving households were relatively older, cultivated more farm land, produced greater output and had higher income than the non-remittance receiving households. The significant factors influencing the output of the remittance receiving households were farm size, labour, other variable inputs like fertilzer and agrochemicals, planting materials, etc and capital which were all positively related to output and significant at 1 percent significance level except for capital that was significant at 5 percent; while for the non reemittance receivng households, the significant factors influencing their output were farm size, labour and capital which were all positively related to output. Farm size was significant at 1 percent while labour and capital were respectively significant at 5 perccent level of significance. The dummy representing household type was significant at 1 percent and positively related to output, implying that remittance receiving households obtained higher output than the non receiving households. The results of the statistical tests for structural shift in production function and differences in 1210 output revealed that significant difference between the production functions of the remittance receiving and non-remittance receiving farm households and output advantage for the remittance receiving households derivable from the use of remittance income.

Risk Management and Healthcare Policy, 2020

Background: This study examines the role of the agriculture and foreign remittances in mitigating rural poverty in Pakistan. Methods: The data used relate to the period 1980-2017 and are sourced from the World Bank and the Economic Survey of Pakistan produced annually by the Ministry of Finance. The ARDL technique was used to calculate the effects of agriculture and foreign remittances on rural poverty. Results: The results of this study indicate that agriculture helps to mitigate rural poverty in the long run, but that foreign remittances are more effective in reducing rural poverty in the short run. In this paper, results confirm the existence of correlations between agriculture, foreign remittances and rural poverty. Conclusion: The outcomes of this study support the call for the government to introduce agricultural credit schemes for the rural population of Pakistan. Moreover, the government should take steps to enhance diplomatic relations with other countries and simplify policies and visa application procedures for Pakistani workers. Finally, this study suggests the government should simplify procedures for the transfer of foreign remittances to Pakistan.

2017

Executive summary Recent decades have seen an unprecedented rise in out-migration across rural South and East Asia, brought about by the combined pressures of climate change, water stress and rising living costs, as well as the changed aspirations of the younger generation. However, unlike the historical labour migrations of industrial revolution Europe which represented a ‘break’ from the land, today’s labour migration is largely cyclical. Migrants often retain binding links to their land and the agrarian economy, with certain family members leaving and others staying behind to manage the farm, in patterns often structured by gender and age. Unravelling the dynamics of the connection between migrants and the agricultural and natural resource based economy at home is critical for rural development planning today, yet policy concern in this field has remained relatively limited.

American Economic Review, 1999

Purpose-The purpose of this study is to explore the relationship between migration, remittances and agricultural productivity by applying the new economics of labor migration model in the context of northwest China. The specific objectives are to examine the impacts of rural out-migration on agricultural productivity in various farming systems, and whether remittances have been reinvested in agriculture. Design/methodology/approach-Cross-sectional household survey data from three townships were analyzed with the three-stage least squares (3SLS) regression model. Findings-In multi-cropping small farming systems, at least in the short run, the loss resulting from losing family labour on lower-return grain crop production is likely to be offset by the gain from investing in capital-intensive and profitable cash crop production. Originality/value-This study provides empirical evidence for the MELM theory. It expands Taylor et al.'s studies by comparing investment behavior and production choices among multiple farm activities, and enriches previous studies by showing that the relation between remittances and agricultural investment depends on the farm activities' profitability.

2009

Keywords: migration, remittances, income, rice, farming systems)

This working paper uses the most recent cross-section national-level household data to analyze the effects of migration and remittances on agriculture yield. It demonstrates two important results: (i) migration negatively affects agriculture yield and (ii) remittance-receiving agriculture households have not demonstrated improvements in agriculture productivity despite increased household incomes. This paper recommends the need for measures to incentivize remittance-receiving agriculture households to invest in capital goods and inputs to improve agriculture productivity so that it more than compensates for the yield losses arising from labor migration. About the Asian Development Bank ADB's vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region's many successes, it remains home to approximately two-thirds of the world's poor: 1.6 billion people who live on less than $2 a day, with 733 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue,

This paper investigates how remittances flow to Nigeria from household migrants correlate with farm production efficiency of the left behind in rural areas using the Living Standard Measurement Survey data set. We applied the production frontier model from which efficiency scores for two groups of farmers were recovered: migrant households and non-migrant households. We subjected the efficiency scores to Anova and stochastic dominance analyses. Mean production efficiency for migrant households was significantly higher at p < 0.05. Across all percentiles, migrant households had higher technical efficiency level compared to households with out migrants. Thus rejecting the hypothesis of negative production efficiency effect of migrant remittances flow to farm households. While policy programmes should promote labour mobility and remittances, it supposes a complementary policy that promote labour saving farm technologies.

2014

IOP Conference Series: Earth and Environmental Science , 2020

In Indonesia rural society, remittance sent to families is more economical and routine since it is used to meet the families' life necessities, education, and health, as well as to support the life necessities of whom are taking care of the family during the migrants are in destination areas. Remittances sent to families in migrants' homelands are ideally using for production and investment activities. This usage of remittances gives a positive impact on homelands development , especially can be seen clearly in rural areas. This research will consider the relationship of remittance and rural development. The data collected included qualitative data from in-depth interviews and supported by study works of literature. Expectations of this research are remittances from migrants will improve rural development. This research showed that remittance is not only eagerly by migrants' families, but also giving advantages for their homelands. Improvement of rural economy will strengthen the national economy and development.