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Remittances, Consumption and Investment in Ghana

ACCOUNTING AGRICULTURAL ECONOMICS AMOUNT OF REMITTANCES CAPITA REMITTANCES CLUSTERS COLLEGE EDUCATION CONSUMER CONSUMER GOODS CONTRIBUTION CONTRIBUTION OF REMITTANCES COUNTRIES OF ORIGIN CULTURAL CHANGE CURRENCY CURRENCY CRISIS DATA ON REMITTANCES DEVELOPING COUNTRIES DEVELOPMENT IMPACT OF REMITTANCES DISPOSABLE INCOME DUMMY VARIABLE DUMMY VARIABLES DURABLE DURABLE GOODS DURABLES EARNINGS ECONOMIC CHARACTERISTICS ECONOMIC DEVELOPMENT ECONOMIC POLICY ECONOMIC SHOCKS EFFECT OF REMITTANCES EFFECTS OF REMITTANCES EQUIPMENT ETHNIC GROUPS EXCHANGE RATE EXPENDITURE EXPENDITURES FAMILY BUDGETS FAMILY SIZE FAMILY TIES FARM INCOME FUNGIBLE GENDER GLOBAL DEVELOPMENT GLOBAL DEVELOPMENT FINANCE HOUSEHOLD APPLIANCES HOUSEHOLD EXPENDITURE HOUSEHOLD EXPENDITURES HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD LEVEL HOUSEHOLD SIZE HOUSEHOLD SURVEYS HUMAN CAPITAL IMMIGRANT IMPACT OF MIGRATION IMPACT OF REMITTANCES INCOME FLOWS INCOME LEVELS INEQUALITY INFORMAL CHANNELS INSTRUMENT INTERNAL MIGRANTS INTERNAL MIGRATION INTERNATIONAL BANK INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE INTERNATIONAL MIGRANTS INTERNATIONAL MIGRATION INTERNATIONAL REMITTANCES INVESTING INVESTMENT BEHAVIOR INVESTMENT DECISIONS LABOR FORCE LABOR MARKET LABOUR FORCE LARGE TRANSFERS LEVEL OF POVERTY LIVING CONDITIONS LIVING STANDARDS LOC LOW INCOME LOW-INCOME LOW-INCOME COUNTRY MEAT MICROENTERPRISES MIDDLE EAST MIGRANT MIGRANTS MONETARY FUND MONIES NUMBER OF CHILDREN NUMBER OF HOUSEHOLDS PHYSICAL CAPITAL POLICY RESEARCH POLICY RESEARCH WORKING PAPER PRIMARY EDUCATION PRIMARY SCHOOL PROBABILITY PROGRESS RECEIPT REGIONAL DUMMIES REGIONAL DUMMY REGISTRATION FEES REGRESSION ANALYSIS RELIGIOUS GROUP RELIGIOUS GROUPS REMITTANCE REMITTANCE FLOWS REMITTANCE RECEIVING REMITTANCE RECEIVING HOUSEHOLDS REMITTANCE-RECEIVING HOUSEHOLDS REMITTANCES RENTAL PAYMENTS RESPECT RETURN RETURNS ROLE OF REMITTANCES RURAL AREAS SAVINGS SECONDARY EDUCATION SECONDARY SCHOOL SECONDARY SCHOOL EDUCATION SENIOR SEX SOCIAL PROGRAMS SOURCE OF INCOME SOURCES OF INCOME TELEVISION UNIVERSITY EDUCATION WAGE
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World Bank, Washington, DC
Africa | Ghana
2012-05-25T15:40:53Z | 2012-05-25T15:40:53Z | 2008-02

This paper uses a new, nationally-representative household survey from Ghana to analyze within a rigorous econometric framework how the receipt of internal remittances (from within Ghana) and international remittances (from African or other countries) affects the marginal spending behavior of households on a broad range of consumption and investment goods, including food, education and housing. Contrary to other studies, which find that remittances are spent disproportionately on consumption (food and consumer goods/durables) or investment goods (education and housing), the findings show that households receiving remittances in Ghana do not spend more at the margin on food, education and housing than households with similar income levels and characteristics that do not receive remittances. When the analysis controls for endogeneity and selection bias, the findings show that any differences in the marginal spending behavior between remittance-receiving and non-receiving households are explained completely by the observed and unobserved characteristics of households. Households in Ghana treat remittances just like any other source of income, and there are no changes in marginal spending patterns for households with the receipt of remittance income.

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