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International Migration, Remittances And Poverty Alleviation In Ethiopia


The paper explores the impact of international remittances on the Ethiopian economy and on the livelihoods and welfare of households. A simple dynamic econometric model, Vector Autoregressive (VAR) model, was used to see the impact of international remittances on absorption, spending and output. Moreover, we used binary outcome model to test whether remittances have an impact on the welfare of households. It uses macroeconomic data and data from the Ethiopian urban household survey.It was found that remittance shocks positively affect macroeconomic variables; the effect remained to be volatile in the very first periods after the shock. However, the impacts tend to sustain in the years after the fifth period. Moreover, through the positive (but inelastic) relationship between growth and poverty, private remittance inflows have an important implication on poverty in Ethiopia. International remittances significantly reduced the poverty incidence among the urban households in the country. It was also found that female-headed households are more likely to use remittance more effectively than male-headed households are

Corporate Author: 
Getnet Alemu & Worku Gebeyehu (Editor) & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Ethiopian Economic Association (EEA)
Primary Descriptors: 


Secondary Descriptor: 

Ethiopia economy - Remittances, Remittances - Housholds welfare

Geographic Descriptors: 
Ethiopia, Southern Tigrai
Cataloge Date: 
Broad Subject heading: 
Poverty , Growth
Call Number: 
330.963 PRO 2011
Serial Key Title: 
Proceedings of the Eighth International Conference on the Ethiopian Economy
Publication catagory: 
Content type: 
Publication date: 
2013-06-27 23:11:00
Forum or Discussion date: 
2013-02-27 15:43:09
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Current frequency: