Scandinavian Working Papers in Economics
Working Papers in Economics,
University of Gothenburg, Department of Economics
No 631: International Remittances and Private Inter-household Transfers: Exploring the Links
Yonas Alem () and Lisa Andersson ()
Additional contact information
Yonas Alem: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O Box 640, SE 40530 Gothenburg, Sweden
Lisa Andersson: OECD Development Centre, Paris, France
Abstract: We investigate the effect of remittances from migrated family members on informal inter- household transfers - an issue that has received limited attention in the literature. Using rich panel data from urban Ethiopia, we show that receiving international remittances significantly increases the value of private domestic inter-household 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 interna- tional remittances, effects important to consider when analyzing the impact of international remittances on household outcomes in recipient countries.
Keywords: International Remittances; Inter-household Transfers; Urban Ethiopia
22 pages, October 2015
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