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The impact of remittance income on rural households in China

The impact of remittance income on rural households in China 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png China Agricultural Economic Review Emerald Publishing

The impact of remittance income on rural households in China

China Agricultural Economic Review , Volume 1 (1): 20 – Sep 26, 2008

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Publisher
Emerald Publishing
Copyright
Copyright © 2009 Emerald Group Publishing Limited. All rights reserved.
ISSN
1756-137X
DOI
10.1108/17561370910915357
Publisher site
See Article on Publisher Site

Abstract

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.

Journal

China Agricultural Economic ReviewEmerald Publishing

Published: Sep 26, 2008

Keywords: China; Consumption; Rural economies; Migrant workers; Income; Agriculture

References