1. Home
  2. Volume 6 - Number 2
  3. Impact of migration on household consumption expenditures in Bangladesh using the coarsened exact matching (CEM) approach
New submission
Issues
Journal Information
Aims and ScopeEditorial BoardEditorial Advisory BoardJournal Policies
Resources
For Readers
For Authors
For Editors
For Reviewers
Publication EthicsCall for Special Issue
ISSN
ISSN 2615-9821
ISSN(Previous) 2588-1396

Volume 6 - Number 2 | July

Impact of migration on household consumption expenditures in Bangladesh using the coarsened exact matching (CEM) approach

Aktar Hossain, Mohammad Osman Gani

20/07/2022 74 0 0
Like Buy now 20.000 đ
Bangladesh Migration Household consumption Expenditure Coarsened exact matching

Abstract:

Purpose
The study aims to examine the impact of migration on household consumption expenditures in Bangladesh.

Design/methodology/approach
The paper uses coarsened exact matching methods to examine the causal impact between migration and household welfare using the dataset on Bangladesh Household Income and Expenditure Survey 2010 on 12,213 households.

Findings
The study reveals that migration has a positive impact on household welfare improvement through increases in their consumption expenditures. Households with migration status are found to spend more on food, non-food (housing, durable goods, fuel, cosmetics, cleaning, transport, clothing, taxes, insurance, recreation) items and medical. However, the authors do not find any evidence of impacts on education expenditures.

Research limitations/implications
The availability of panel data and the use of other variables (e.g. household investment expenditures, household budget allocation for agricultural input expenses, etc.) would have been able to provide vivid results.

Originality/value
This paper adds to the Bangladeshi migration literature by offering a novel empirical assessment of the Bangladeshi migrants and its impact on household welfare by drawing upon a recently published, nationally representative sample of Bangladeshi households.

References:

  1. Abebaw, D., Admassie, A., Kassa, H. and Padoch, C. (2020), “Can rural outmigration improve household food security? Empirical evidence from Ethiopia”, World Development, Vol. 129, pp. 104879-104889.
  2. Acharya, C.P. and Leon-Gonzalez, R. (2019), “The quest for quality education: international remittances and rural–urban migration in Nepal”, Migration and Development, Vol. 8 No. 2, pp. 119-154.
  3. Adams, R.H.J. (2006), Remittances and Poverty in Ghana, Vol. 3838, The World Bank, Washington DC.
  4. Adams, R.H. Jr and Cuecuecha, A. (2010), “Remittances, household expenditure and investment in Guatemala”, World Development, Vol. 38 No. 11, pp. 1626-1641.
  5. Agadjanian, V., Hayford, S.R. and Jansen, N.A. (2020), “Men's migration and women's mortality in rural Mozambique”, Social Science and Medicine, Vol. 270, p. 113519.
  6. Aguayo-Téllez, E., García-Andrés, A. and Martinez, J.N. (2021), “Foreign vs domestic remittances and household welfare: evidence from Mexico”, International Journal of Development Issues, Vol. 20 No. 2, pp. 176-190.
  7. Ali, I., Jaleel, A.C. and Bhagat, R.B. (2019), “Migration, remittances and poverty reduction”, Growth, Disparities and Inclusive Development in India, Springer, Singapore, pp. 177-190.
  8. Bangladesh Bank (2017), Annual Report 2016-2017, Bangladesh Bank, available at: https://www.bb.org.bd/pub/annual/anreport/ar1617/index1617.php.
  9. Bangladesh Bureau of Statistics (BBS) (2011), Report of the Household Income and Expenditure Survey 2010, Bangladesh Bureau of Statistics, available at: http://203.112.218.65:8008/WebTestApplication/userfiles/Image/LatestReports/HIES-10.pdf.
  10. Collins, F.L. (2018), “Desire as a theory for migration studies: temporality, assemblage and becoming in the narratives of migrants”, Journal of Ethnic and Migration Studies, Vol. 44 No. 6, pp. 964-980.
  11. Crawley, H. and Skleparis, D. (2018), “Refugees, migrants, neither, both: categorical fetishism and the politics of bounding in Europe's migration crisis”, Journal of Ethnic and Migration Studies, Vol. 44 No. 1, pp. 48-64.
  12. Cuong, N.V. and Linh, V.H. (2018), “The impact of migration and remittances on household welfare: evidence from Vietnam”, Journal of International Migration and Integration, Vol. 19 No. 4, pp. 945-963.
  13. Czaika, M. (2015), “Migration and economic prospects”, Journal of Ethnic and Migration Studies, Vol. 41 No. 1, pp. 58-82.
  14. Djiofack, C.Z., Djimeu, E.W. and Boussichas, M. (2013), “Impact of qualified worker emigration on poverty: a macro–micro-simulation approach for an African economy”, Journal of African Economies, Vol. 23 No. 1, pp. 1-52.
  15. Durand, J. and Massey, D.S. (1992), “Mexican migration to the United States: a critical review”, Latin American Research Review, Vol. 27 No. 2, pp. 3-42.
  16. Franceschelli, M. and Keating, A. (2018), “Imagining the future in the neoliberal era: young people's optimism and their faith in hard work”, Young, Vol. 26 No. 4S, pp. 1S-17S.
  17. Harris, J.R. and Todaro, M.P. (1970), “Migration, unemployment and development: a two-sector analysis”, The American Economic Review, Vol. 60 No. 1, pp. 126-142.
  18. Hasanah, A., Mendolia, S. and Yerokhin, O. (2017), “Labour migration, food expenditure, and household food security in eastern Indonesia”, Economic Record, Vol. 93, pp. 122-143.
  19. Hoffmann, E.M., Konerding, V., Nautiyal, S. and Buerkert, A. (2019), “Is the push-pull paradigm useful to explain rural-urban migration? A case study in Uttarakhand, India”, PloS One, Vol. 14 No. 4, e0214511.
  20. Household Income and Expenditure Survey (HIES) (2010), Bangladesh Bureau of Statistics. Statistics Division, Ministry of Planning, Dhaka.
  21. Houthakker, H.S. (1957), “An international comparison of household expenditure patterns, commemorating the centenary of Engel’s law”, Econometrica, Journal of the Econometric Society, October, Vol. 25 No. 4, pp. 532-551.
  22. Iacus, S.M., King, G. and Porro, G. (2012), “Causal inference without balance checking: coarsened exact matching”, Political Analysis, Vol. 20 No. 1, pp. 1-2.
  23. Kanayo, O., Anjofui, P. and Stiegler, N. (2019), “Push and pull factors of international migration: evidence from migrants in South Africa”, Journal of African Union Studies, Vol. 8 No. 2, pp. 219-250.
  24. King, S.C., Meiselman, H.L. and Carr, B.T. (2010), “Measuring emotions associated with foods in consumer testing”, Food Quality and Preference, Vol. 21 No. 8, pp. 1114-1116.
  25. King, G. and Nielsen, R. (2016), “Why propensity scores should not be used for matching”, 378, available at: http://j.mp/1sexgVw_Download_Citation_BibTex_Tagged_XML_Download Paper.
  26. Klaus, W. and Pachocka, M. (2019), “Examining the global north migration policies: a ‘push out–push back’ approach to forced migration”, International Migration, Vol. 57 No. 5, pp. 280-293.
  27. Koc, I. and Onan, I. (2001), The Impact of Remittances of International Migrants on the Standard of Living of the Left-Behind Families in Turkey, Hacettepe University Institute of Population Studies, p. 6100, available at: http//www.iussp.org.
  28. Koc, I. and Onan, I. (2004), “International migrants' remittances and welfare status of the left-behind families in Turkey”, International Migration Review, Vol. 38 No. 1, pp. 78-112.
  29. Lewis, W.A. (1954), “Economic development with unlimited supplies of labour”, The Manchester School, Vol. 22 No. 2, pp. 139-191.
  30. López-Feldman, A. and Chávez, E. (2017), “Remittances and natural resource extraction: evidence from Mexico”, Ecological Economics, Vol. 132 No. C, pp. 69-79.
  31. Martey, E. and Armah, R. (2021), “Welfare effect of international migration on the left-behind in Ghana: evidence from machine learning”, Migration Studies, Vol. 9 No. 3, pp. 872-895.
  32. Monnet, E. and Wolf, C. (2017), “Demographic cycles, migration and housing investment”, Journal of Housing Economics, Vol. 38 No. C, pp. 38-49.
  33. Nguyen, C.V., Van den Berg, M. and Lensink, R. (2011), “The impact of work and non-work migration on household welfare, poverty and inequality”, Economics of Transition, Vol. 19 No. 4, pp. 771-799.
  34. Nguyen, D.L., Grote, U. and Nguyen, T.T. (2017), “Migration and rural household expenditures: a case study from Vietnam”, Economic Analysis and Policy, Vol. 56, pp. 163-175.
  35. Pan, Z., Xu, W., Wang, G., Li, S. and Yang, C. (2020), “Will remittances suppress or increase household income in the migrant-sending areas? Modeling the effects of remittances in rural China”, China Economic Review, Vol. 61, p. 101452.
  36. Quisumbing, A. and McNiven, S. (2010), “Moving forward, looking back: the impact of migration and remittances on assets, consumption, and credit constraints in the rural Philippines”, The Journal of Development Studies, Vol. 46 No. 1, pp. 91-113.
  37. Raihan, S., Sugiyarto, G., Bazlul, H.K. and Jha, S. (2009), Remittances and Household Welfare: A Case Study of Bangladesh, Working Paper, (189), Asian Development Bank Economics, available at: https://www.adb.org/publications/remittances-and-household-welfare-case-study-bangladesh.
  38. Ramos, C. (2018), “Onward migration from Spain to London in times of crisis: the importance of life-course junctures in secondary migrations”, Journal of Ethnic and Migration Studies, Vol. 44 No. 11, pp. 1841-1857.
  39. Randazzo, T. and Piracha, M. (2019), “Remittances and household expenditure behaviour: evidence from Senegal”, Economic Modelling, Vol. 79(C), pp. 141-153.
  40. Ravenstein, E.G. (1885), “The laws of migration”, Journal of the Statistical Society of London, Vol. 48 No. 2, pp. 167-235.
  41. Russell, S.S., Jacobsen, K., Stanley, W.D. and Mundial, B. (1990), International Migration and Development in Sub-Saharan Africa, Vol. 2, World Bank, Washington, DC.
  42. Saqib, S.E., Kuwornu, J.K., Panezia, S. and Ali, U. (2018), “Factors determining subsistence farmers' access to agricultural credit in flood-prone areas of Pakistan”, Kasetsart Journal of Social Sciences, Vol. 39 No. 2, pp. 262-268.
  43. Sharma, M. and Zaman, H. (2009), Who Migrates Overseas and is it Worth Their while? An Assessment of Household Survey Data from Bangladesh. An Assessment of Household Survey Data from Bangladesh (August 1, 2009), Working Paper, (5018), World Bank Policy Research.
  44. Sharma, K., Oczkowski, E. and Hicks, J. (2016), “Skill shortages in regional Australia: a local perspective from the Riverina”, Economic Analysis and Policy, Vol. 52, pp. 34-44.
  45. Sikder, M.J.U. and Higgins, V. (2017), “Remittances and social resilience of migrant households in rural Bangladesh”, Migration and Development, Vol. 6 No. 2, pp. 253-275.
  46. Sjaastad, L.A. (1962), “The costs and returns of human migration”, Journal of Political Economy, Vol. 70 No. 5, Part 2, pp. 80-93.
  47. Snarr, H.W., Friesner, D. and Burkey, M.L. (2011), “Unintended migration consequences of US welfare reform”, Economic Analysis and Policy, Vol. 41 No. 3, p. 233.
  48. Stark, O. and Bloom, D.E. (1985), “The new economics of labor migration”, The American Economic Review, Vol. 75 No. 2, pp. 173-178.
  49. Steenvoorden, E. and Harteveld, E. (2018), “The appeal of nostalgia: the influence of societal pessimism on support for populist radical right parties”, West European Politics, Vol. 41 No. 1, pp. 28-52.
  50. Tabuga, A.D. (2007), International Remittances and Household Expenditures: the Philippine Case (No. 2007-18), PIDS Discussion Paper Series.
  51. Tang, S. (2020), “Determinants of migration and household member arrangement among poor rural households in China: the case of North Jiangsu”, Population, Space and Place, Vol. 26 No. 1, p. e2279.
  52. Taylor, J.E., Arango, J., Hugo, G., Kouaouci, A., Massey, D.S. and Pellegrino, A. (1996), “International migration and community development”, Population Index, pp. 397-418.
  53. Taylor, E. and Lopez-Feldman, A. (2010), “Does migration make rural households more productive? Evidence from Mexico”, The Journal of Development Studies, Vol. 46 No. 1, pp. 68-90.
  54. Taylor, J.E. and Mora, J. (2006), Does Migration Reshape Expenditures in Rural Households?: Evidence from Mexico, Vol. 3842, World Bank Publications.
  55. Thapa, S. and Acharya, S. (2017), “Remittances and household expenditure in Nepal: evidence from cross-section data”, Economies, Vol. 5 No. 2, pp. 2-17.
  56. To, H., Grafton, R.Q. and Regan, S. (2017), “Immigration and labour market outcomes in Australia: findings from HILDA 2001-2014”, Economic Analysis and Policy, Vol. 55, pp. 1-13.
  57. Varga, M. (2019), “‘Subsistence' Readings: world Bank and state approaches to commercialising agriculture in post-communist Eurasia”, The Journal of Development Studies, Vol. 55 No. 6, pp. 1253-1266.
  58. Wadood, S.N. and Hossain, A. (2017), “Microeconomic impact of remittances on household welfare: evidences from Bangladesh”, Business and Economic Horizons (BEH), Vol. 13 Nos 1232-2017-2401, pp. 10-29.
  59. Wouterse, F.S. (2008), Migration, Poverty, and Inequality: Evidence from Burkina Faso, Vol. 786, Intl Food Policy Res Inst., NW.
  60. Xu, D., Guo, S., Xie, F., Liu, S. and Cao, S. (2017), “The impact of rural laborer migration and household structure on household land use arrangements in mountainous areas of Sichuan Province, China”, Habitat International, Vol. 70, pp. 72-80.
  61. Xu, D.D., Cao, S., Wang, X.X. and Liu, S.Q. (2018), “Influences of labor migration on rural household land transfer: a case study of Sichuan Province, China”, Journal of Mountain Science, Vol. 15 No. 9, pp. 2055-2067.
  62. Yaméogo, N.D. (2014), Analysis of Household Expenditures and the Impact of Remittances Using a Latent Class Model: the Case of Burkina Faso, Working Paper Series No 200, African Development Bank, Tunis.
  63. Yang, D. (2008), “International migration, remittances and household investment: evidence from Philippine migrants' exchange rate shocks”, The Economic Journal, Vol. 118 No. 528, pp. 591-630.
  64. Yuan, J., Lu, Y., Ferrier, R.C., Liu, Z., Su, H., Meng, J. and Jenkins, A. (2018), “Urbanization, rural development and environmental health in China”, Environmental Development, Vol. 28, pp. 101-110.
  65. Zhang, X., Yang, J. and Thomas, R. (2017), “Mechanization outsourcing clusters and division of labor in Chinese agriculture”, China Economic Review, Vol. 43, pp. 184-195.
  66. Further reading
  67. Acosta, P., Calderon, C., Fajnzylber, P. and Lopez, H. (2008), “What is the impact of international remittances on poverty and inequality in Latin America?”, World Development, Vol. 36 No. 1, pp. 89-114.
  68. Blackwell, M., Iacus, S., King, G. and Porro, G. (2009), “CEM: coarsened exact matching in Stata”, The Stata Journal, Vol. 9 No. 4, pp. 524-546.
  69. De Haas, H. and Rodríguez, F. (2010), “Mobility and human development: introduction”, Journal of Human Development and Capabilities, Vol. 11 No. 2, pp. 177-184.
  70. Lu, Y. (2013), “Household migration, remittances and their impact on health in Indonesia”, International Migration, Vol. 51, pp. e202-e215.
  71. Page, J. and Plaza, S. (2006), “Migration remittances and development: a review of global evidence”, Journal of African Economies, Vol. 15 No. 2, pp. 245-336.

Related articles