Remittances and Household Behavior in the Philippines

Publication | December 2009

Remittances may help in reducing poverty in the Philippines, but they are not enough to rebalance the country's growth and create long-term human and capital investment.

This paper examines the role of remittances in supporting household income, consumption, and investment in the Philippines, and its potential for rebalancing growth and creating long-term human and capital investment. It finds that although remittances negatively influence the share of food consumption, they have no significant effect on other key items of household expenditure like education and health care. The analysis shows that although remittances may reduce poverty, there is not enough evidence to support that they can contribute toward rebalancing growth by creating domestic demand.


  • Abstract
  • Introduction
  • Patterns of Migration and Remittance Flows
  • Effects of Remittances on Recipient Households - International Evidence
  • A Statistical Profile of Remittances and Households
  • Empirical Analysis
  • Summary and Conclusions
  • References

Additional Details

  • Economics
  • Poverty
  • Social development and protection
  • Social protection
  • Philippines
  • 1655-5252 (Print)

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