Affordable Access

Where Did All the Remittances Go? Understanding the Impact of Remittances on Consumption Patterns in Rural China

Authors

Abstract

We focus on the impact of migrants’ remittances on consumption patterns in rural China, allowing for endogeneity of remittances and county fixed-effects. We find that the marginal propensity to consume out of remittances is close to unity, which is far greater than that out of non-migrant earnings or farm income. These findings imply that rural households take remittances as permanent income and are consistent with the prevalence of circular and repeat migration which is largely caused by the combination of the restrictive hukou (household registration) system and the rigid land tenure system in China.

There are no comments yet on this publication. Be the first to share your thoughts.

Statistics

Seen <100 times
0 Comments

More articles like this

Where did they all go?

on American journal of orthopedic... September 2002

Where did all the fun go?

on Advances in neonatal care : of... February 2002

Where did all the coal gas go?

on Organic Geochemistry Jan 01, 2003
More articles like this..