Substitutability of investments
| Invested on physical capital or social capital | Invested on human capital or social capital | Invested on human capital or physical capital | ||
|---|---|---|---|---|
| Human capital | Physical capital (=1 if yes) | Social capital (=1 if yes) | ||
| Education (=1 if yes) | Health (=1 if yes) | |||
| (1) | (2) | (3) | (4) | |
| Panel-A: Uganda | ||||
| Received remittances (=1 if yes) | 0.022 (0.036) | 0.074 (0.066) | 0.018** (0.008) | 0.032 (0.021) |
| Mean of the outcome variable | 0.769 | 0.872 | 0.124 | 0.314 |
| Observations | 576 | 576 | 1,480 | 1,468 |
| Panel-B: Kenya | ||||
| Received remittances (=1 if yes) | 0.064 (0.068) | 0.022 (0.115) | 0.108*** (0.026) | 0.177*** (0.016) |
| Mean of the outcome variable | 0.672 | 0.811 | 0.152 | 0.470 |
| Observations | 882 | 882 | 1,545 | 1,516 |
| Panel-C: Nigeria | ||||
| Received remittances (=1 if yes) | 0.177*** (0.033) | −0.049* (0.027) | 0.131*** (0.024) | −0.179*** (0.005) |
| Mean of the outcome variable | 0.758 | 0.844 | 0.184 | 0.391 |
| Observations | 986 | 986 | 1,874 | 1,884 |
| Panel-D: Burkina Faso | ||||
| Received remittances (=1 if yes) | 0.155*** (0.029) | 0.197*** (0.018) | −0.181*** (0.018) | 0.147*** (0.017) |
| Mean of the outcome variable | 0.672 | 0.901 | 0.235 | 0.661 |
| Observations | 1,331 | 1,331 | 1,834 | 1,800 |
| Panel-E: Senegal | ||||
| Received remittances (=1 if yes) | 0.011 (0.066) | −0.006 (0.052) | 0.018 (0.058) | 0.208*** (0.023) |
| Mean of the outcome variable | 0.678 | 0.853 | 0.099 | 0.748 |
| Observations | 1,282 | 1,282 | 1,651 | 1,584 |
Non-linear effect of remittances amount on household investment expenditure
| 2SLS | 2SLS | |||||||
|---|---|---|---|---|---|---|---|---|
| Human capital | Log (Physical capital expenditure) | Log (Social capital expenditure) | Human capital | Log (Physical capital expenditure) | Log (Social capital expenditure) | |||
| Log (Education expenditure) | Log (Health expenditure) | Log (Education expenditure) | Log (Health expenditure) | |||||
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | |
| Panel-A: Uganda | ||||||||
| Log (Cash remittances) | 6.938 (4.588) | 0.530 (2.355) | −3.109 (2.093) | −3.317 (3.466) | 3.916 (2.970) | 2.155 (1.729) | 0.177 (0.699) | 1.956 (1.604) |
| Log (Cash remittances) squared | −0.986 (0.809) | 0.045 (0.408) | 0.577 (0.366) | 0.735 (0.620) | ||||
| Log (Cash remittances) × High remittance | −2.933 (2.719) | −1.214 (1.656) | 0.205 (0.824) | −1.627 (1.560) | ||||
| Observations | 1,603 | 1,603 | ||||||
| Panel-B: Kenya | ||||||||
| Log (Cash remittances) | 0.867 (1.595) | 1.584 (1.356) | 0.904 (1.005) | 3.852* (2.028) | 0.996* (0.527) | −0.057 (0.315) | 0.507* (0.262) | 0.311 (0.283) |
| Log (Cash remittances) squared | −0.032 (0.281) | −0.248 (0.240) | −0.065 (0.177) | −0.573 (0.358) | ||||
| Log (Cash remittances) × High remittance | −0.931 (0.584) | 0.001 (0.416) | 0.470 (0.466) | −0.707* (0.426) | ||||
| Observations | 1,821 | 1,821 | ||||||
| Panel-C: Nigeria | ||||||||
| Log (Cash remittances) | 6.736 (4.127) | 0.171 (1.493) | 6.679* (4.012) | 4.603 (2.884) | 0.787*** (0.203) | −0.579*** (0.178) | 0.517*** (0.181) | −0.596*** (0.197) |
| Log (Cash remittances) squared | −0.821 (0.540) | −0.090 (0.197) | −0.831 (0.525) | −0.689* (0.383) | ||||
| Log (Cash remittances) × High remittance | −0.162 (1.672) | −1.911 (2.561) | 3.061 (3.495) | −2.348 (2.895) | ||||
| Observations | 2,029 | 2,029 | ||||||
| Panel-D: Burkina Faso | ||||||||
| Log (Cash remittances) | −1.690 (2.917) | −3.570 (4.115) | 2.952 (3.347) | 3.977 (3.135) | 0.588*** (0.212) | 0.517*** (0.182) | −0.248 (0.153) | 0.573*** (0.215) |
| Log (Cash remittances) squared | 0.463 (0.614) | 0.863 (0.863) | −0.682 (0.704) | −0.751 (0.662) | ||||
| Log (Cash remittances) × High remittance | 2.096 (2.325) | 0.060 (1.659) | 0.565 (1.551) | 0.300 (1.624) | ||||
| Observations | 1,895 | 1,895 | ||||||
| Panel-E: Senegal | ||||||||
| Log (Cash remittances) | 2.999 (2.592) | −1.285 (1.823) | −5.129 (3.366) | −7.571 (4.902) | −0.753 (0.525) | 0.428 (0.335) | −0.293 (0.239) | −0.112 (0.369) |
| Log (Cash remittances) squared | −0.415 (0.348) | 0.190 (0.244) | 0.645 (0.448) | 0.969 (0.655) | ||||
| Log (Cash remittances) × High remittance | 8.061 (6.029) | −3.989 (3.602) | 2.626 (2.747) | 1.752 (4.266) | ||||
| Observations | 1,705 | 1,705 | ||||||
Effect of remittances on household investment decision conditional on having a migrant
| Household with a migrant | Household with no migrant | |||||||
|---|---|---|---|---|---|---|---|---|
| Human Capital | Physical Capital (=1 if yes) | Social Capital (=1 if yes) | Human Capital | Physical Capital (=1 if yes) | Social Capital (=1 if yes) | |||
| Education (=1 if yes) | Health (=1 if yes) | Education (=1 if yes) | Health (=1 if yes) | |||||
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | |
| Panel-A: Uganda | ||||||||
| Received remittances (=1 if yes) | 0.143*** (0.014) | 0.113* (0.064) | 0.044** (0.018) | 0.096*** (0.017) | 0.010 (0.011) | −0.014*** (0.002) | −0.010 (0.006) | −0.005*** (0.001) |
| Mean of the outcome variable | 0.736 | 0.798 | 0.131 | 0.327 | 0.641 | 0.786 | 0.108 | 0.276 |
| Mean received remittances | 0.356 | 0.054 | ||||||
| Observations | 719 | 884 | ||||||
| Panel-B: Kenya | ||||||||
| Received remittances (=1 if yes) | 0.246*** (0.052) | 0.269*** (0.025) | 0.232*** (0.089) | 0.311*** (0.013) | −0.014*** (0.002) | 0.008 (0.051) | 0.013* (0.007) | 0.013 (0.034) |
| Mean of the outcome variable | 0.610 | 0.692 | 0.153 | 0.436 | 0.566 | 0.649 | 0.119 | 0.389 |
| Mean received remittances | 0.622 | 0.104 | ||||||
| Observations | 1,158 | 1,158 | ||||||
| Panel-C: Nigeria | ||||||||
| Received remittances (=1 if yes) | 0.163** (0.067) | −0.125*** (0.048) | 0.242*** (0.050) | −0.247*** (0.040) | 0.047* (0.025) | −0.010*** (0.003) | 0.022*** (0.005) | −0.036*** (0.005) |
| Mean of the outcome variable | 0.773 | 0.756 | 0.191 | 0.347 | 0.659 | 0.777 | 0.177 | 0.418 |
| Mean received remittances | 0.579 | 0.151 | ||||||
| Observations | 1,253 | 776 | ||||||
| Panel-D: Burkina Faso | ||||||||
| Received remittances (=1 if yes) | 0.206*** (0.048) | 0.253*** (0.015) | −0.216*** (0.056) | 0.242*** (0.027) | 0.053** (0.027) | 0.056 (0.046) | −0.062* (0.034) | 0.057*** (0.011) |
| Mean of the outcome variable | 0.696 | 0.878 | 0.231 | 0.654 | 0.568 | 0.871 | 0.229 | 0.641 |
| Mean received remittances | 0.542 | 0.193 | ||||||
| Observations | 1,142 | 753 | ||||||
| Panel-E: Senegal | ||||||||
| Received remittances (=1 if yes) | −0.006 (0.145) | 0.069 (0.147) | 0.184 (0.123) | 0.318*** (0.052) | −0.012 (0.011) | 0.032*** (0.012) | 0.007 (0.006) | −0.014 (0.009) |
| Mean of the outcome variable | 0.727 | 0.838 | 0.109 | 0.738 | 0.581 | 0.803 | 0.073 | 0.728 |
| Mean received remittances | 0.745 | 0.072 | ||||||
| Observations | 1,065 | 640 | ||||||
Effect of remittances on household investment decision
| Probit | Recursive biprobit | |||||||
|---|---|---|---|---|---|---|---|---|
| Human capital | Physical capital (=1 if yes) | Social capital (=1 if yes) | Human capital | Physical capital (=1 if yes) | Social capital (=1 if yes) | |||
| Education (=1 if yes) | Health (=1 if yes) | Education (=1 if yes) | Health (=1 if yes) | |||||
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | |
| Panel-A: Uganda | ||||||||
| Received remittances (=1 if yes) | 0.198* (0.114) | −0.058 (0.097) | 0.137 (0.106) | 0.157* (0.088) | 0.478 (0.489) | 0.047 (1.021) | 0.730 (0.881) | 0.572 (0.452) |
| Mean of the outcome variable | 0.684 | 0.792 | 0.119 | 0.299 | 0.684 | 0.792 | 0.119 | 0.299 |
| Observations | 1,603 | 1,603 | ||||||
| Panel-B: Kenya | ||||||||
| Received remittances (=1 if yes) | 0.067 (0.070) | 0.043 (0.068) | 0.259*** (0.080) | 0.041 (0.065) | 1.311*** (0.125) | 1.414*** (0.102) | 1.447*** (0.251) | 1.332*** (0.095) |
| Mean of the outcome variable | 0.594 | 0.676 | 0.141 | 0.418 | 0.594 | 0.676 | 0.141 | 0.418 |
| Observations | 1,821 | 1,821 | ||||||
| Panel-C: Nigeria | ||||||||
| Received remittances (=1 if yes) | 0.174** (0.068) | 0.070 (0.068) | 0.186*** (0.070) | 0.116* (0.062) | 1.205*** (0.137) | −0.632* (0.337) | 1.416*** (0.183) | −1.251*** (0.073) |
| Mean of the outcome variable | 0.729 | 0.764 | 0.185 | 0.374 | 0.729 | 0.764 | 0.185 | 0.374 |
| Observations | 2,029 | 2,029 | ||||||
| Panel-D: Burkina Faso | ||||||||
| Received remittances (=1 if yes) | 0.282*** (0.065) | 0.080 (0.080) | 0.000 (0.067) | 0.032 (0.063) | 1.149*** (0.221) | 1.316*** (0.125) | −1.178*** (0.207) | 1.401*** (0.055) |
| Mean of the outcome variable | 0.645 | 0.875 | 0.231 | 0.649 | 0.645 | 0.875 | 0.231 | 0.649 |
| Observations | 1,895 | 1,895 | ||||||
| Panel-E: Senegal | ||||||||
| Received remittances (=1 if yes) | 0.262*** (0.071) | −0.008 (0.081) | 0.192** (0.094) | −0.150** (0.071) | 1.204*** (0.383) | 0.270 (0.417) | 0.198 (0.760) | 1.202*** (0.140) |
| Mean of the outcome variable | 0.672 | 0.825 | 0.096 | 0.734 | 0.672 | 0.825 | 0.096 | 0.734 |
| Observations | 1,705 | 1,705 | ||||||
Effect of cash remittances on household investment decision
| Probit | IV-probit | |||||||
|---|---|---|---|---|---|---|---|---|
| Human capital | Physical capital (=1 if yes) | Social capital (=1 if yes) | Human capital | Physical capital (=1 if yes) | Social capital (=1 if yes) | |||
| Education (=1 if yes) | Health (=1 if yes) | Education (=1 if yes) | Health (=1 if yes) | |||||
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | |
| Panel-A: Uganda | ||||||||
| Log (Cash remittances) | 0.008 (0.005) | −0.003 (0.005) | 0.004 (0.003) | 0.009* (0.005) | 0.137*** (0.015) | 0.102** (0.046) | 0.019 (0.049) | 0.120*** (0.015) |
| Mean of the outcome variable | 0.684 | 0.792 | 0.119 | 0.299 | 0.684 | 0.792 | 0.119 | 0.299 |
| Observations | 1,603 | 1,603 | ||||||
| Panel-B: Kenya | ||||||||
| Log (Cash remittances) | 0.000 (0.003) | 0.002 (0.004) | 0.006** (0.002) | −0.000 (0.004) | 0.072*** (0.010) | 0.079*** (0.011) | 0.072*** (0.008) | 0.085*** (0.002) |
| Mean of the outcome variable | 0.594 | 0.676 | 0.141 | 0.418 | 0.594 | 0.676 | 0.141 | 0.418 |
| Observations | 1,821 | 1,821 | ||||||
| Panel-C: Nigeria | ||||||||
| Log (Cash remittances) | 0.008** (0.003) | 0.002 (0.003) | 0.006** (0.003) | 0.003 (0.004) | 0.073*** (0.010) | −0.044** (0.017) | 0.066*** (0.009) | −0.073*** (0.009) |
| Mean of the outcome variable | 0.729 | 0.764 | 0.185 | 0.374 | 0.729 | 0.764 | 0.185 | 0.374 |
| Observations | 2,029 | 2,029 | ||||||
| Panel-D: Burkina Faso | ||||||||
| Log (Cash remittances) | 0.020*** (0.005) | 0.005 (0.004) | −0.001 (0.004) | −0.001 (0.005) | 0.099*** (0.015) | 0.113*** (0.011) | −0.096*** (0.019) | 0.119*** (0.003) |
| Mean of the outcome variable | 0.645 | 0.875 | 0.231 | 0.649 | 0.645 | 0.875 | 0.231 | 0.649 |
| Observations | 1,895 | 1,895 | ||||||
| Panel-E: Senegal | ||||||||
| Log (Cash remittances) | 0.012*** (0.003) | 0.001 (0.003) | 0.005** (0.002) | −0.010*** (0.003) | 0.022 (0.024) | 0.024 (0.021) | −0.021 (0.020) | 0.021 (0.024) |
| Mean of the outcome variable | 0.672 | 0.825 | 0.096 | 0.734 | 0.672 | 0.825 | 0.096 | 0.734 |
| Observations | 1,705 | 1,705 | ||||||
Correlation of treatment and outcome variables
| Received remittances (=1 if yes) | Log (cash remittances) | Education (=1 if yes) | Health (=1 if yes) | Physical capital (=1 if yes) | Social capital (=1 if yes) | Log (education expenditure) | Log (health expenditure) | Log (physical capital expenditure) | Log (social capital expenditure) | |
|---|---|---|---|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | |
| Panel-A: Uganda | ||||||||||
| Received remittances (=1 if yes) | 1 | |||||||||
| Log (cash remittances) | 0.943 | 1 | ||||||||
| Education (=1 if yes) | 0.120 | 0.108 | 1 | |||||||
| Health (=1 if yes) | 0.017 | 0.015 | 0.120 | 1 | ||||||
| Physical capital (=1 if yes) | 0.049 | 0.047 | 0.088 | 0.050 | 1 | |||||
| Social capital (=1 if yes) | 0.074 | 0.068 | 0.113 | 0.167 | 0.153 | 1 | ||||
| Log (education expenditure) | 0.161 | 0.171 | 0.865 | 0.141 | 0.082 | 0.129 | 1 | |||
| Log (health expenditure) | 0.112 | 0.122 | 0.175 | 0.797 | 0.085 | 0.188 | 0.282 | 1 | ||
| Log (physical capital expenditure) | 0.087 | 0.094 | 0.091 | 0.039 | 0.878 | 0.131 | 0.123 | 0.120 | 1 | |
| Log (social capital expenditure) | 0.102 | 0.114 | 0.143 | 0.142 | 0.175 | 0.887 | 0.206 | 0.232 | 0.190 | 1 |
| Panel-B: Kenya | ||||||||||
| Received remittances (=1 if yes) | 1 | |||||||||
| Log (cash remittances) | 0.937 | 1 | ||||||||
| Education (=1 if yes) | 0.056 | 0.047 | 1 | |||||||
| Health (=1 if yes) | 0.08 | 0.078 | 0.225 | 1 | ||||||
| Physical capital (=1 if yes) | 0.099 | 0.09 | 0.106 | 0.054 | 1 | |||||
| Social capital (=1 if yes) | 0.065 | 0.044 | 0.138 | 0.297 | 0.093 | 1 | ||||
| Log (education expenditure) | 0.072 | 0.101 | 0.881 | 0.204 | 0.06 | 0.106 | 1 | |||
| Log (health expenditure) | 0.114 | 0.158 | 0.203 | 0.812 | 0.047 | 0.229 | 0.266 | 1 | ||
| Log (physical capital expenditure) | 0.098 | 0.114 | 0.095 | 0.048 | 0.918 | 0.07 | 0.078 | 0.064 | 1 | |
| Log (social capital expenditure) | 0.076 | 0.085 | 0.147 | 0.273 | 0.08 | 0.865 | 0.158 | 0.304 | 0.082 | 1 |
| Panel-C: Nigeria | ||||||||||
| Received remittances (=1 if yes) | 1 | |||||||||
| Log (cash remittances) | 0.941 | 1 | ||||||||
| Education (=1 if yes) | 0.066 | 0.085 | 1 | |||||||
| Health (=1 if yes) | 0.031 | 0.019 | 0.126 | 1 | ||||||
| Physical capital (=1 if yes) | 0.076 | 0.068 | −0.011 | 0.002 | 1 | |||||
| Social capital (=1 if yes) | 0.056 | 0.031 | 0.076 | 0.266 | 0.021 | 1 | ||||
| Log (education expenditure) | 0.129 | 0.183 | 0.875 | 0.081 | 0.006 | 0.035 | 1 | |||
| Log (health expenditure) | 0.102 | 0.118 | 0.122 | 0.845 | 0.031 | 0.272 | 0.157 | 1 | ||
| Log (physical capital expenditure) | 0.081 | 0.09 | 0.001 | 0.014 | 0.923 | 0.038 | 0.044 | 0.056 | 1 | |
| Log (social capital expenditure) | 0.074 | 0.069 | 0.051 | 0.225 | 0.044 | 0.92 | 0.055 | 0.274 | 0.074 | 1 |
| Panel-D: Burkina Faso | ||||||||||
| Received remittances (=1 if yes) | 1 | |||||||||
| Log (cash remittances) | 0.928 | 1 | ||||||||
| Education (=1 if yes) | 0.117 | 0.123 | 1 | |||||||
| Health (=1 if yes) | 0.03 | 0.048 | 0.088 | 1 | ||||||
| Physical capital (=1 if yes) | 0.012 | 0.009 | 0.026 | 0.047 | 1 | |||||
| Social capital (=1 if yes) | 0.021 | 0.015 | 0.098 | 0.128 | 0.137 | 1 | ||||
| Log (education expenditure) | 0.126 | 0.154 | 0.861 | 0.105 | 0.053 | 0.085 | 1 | |||
| Log (health expenditure) | 0.038 | 0.091 | 0.116 | 0.76 | 0.059 | 0.135 | 0.202 | 1 | ||
| Log (physical capital expenditure) | 0.028 | 0.033 | 0.055 | 0.062 | 0.939 | 0.134 | 0.096 | 0.106 | 1 | |
| Log (social capital expenditure) | −0.019 | 0.002 | 0.135 | 0.131 | 0.158 | 0.877 | 0.166 | 0.225 | 0.182 | 1 |
| Panel-E: Senegal | ||||||||||
| Received remittances (=1 if yes) | 1 | |||||||||
| Log (cash remittances) | 0.961 | 1 | ||||||||
| Education (=1 if yes) | 0.148 | 0.154 | 1 | |||||||
| Health (=1 if yes) | 0.058 | 0.075 | 0.096 | 1 | ||||||
| Physical capital (=1 if yes) | 0.047 | 0.045 | −0.002 | 0.029 | 1 | |||||
| Social capital (=1 if yes) | −0.003 | −0.016 | 0.027 | 0.115 | 0.06 | 1 | ||||
| Log (education expenditure) | 0.157 | 0.178 | 0.92 | 0.082 | 0.005 | 0.008 | 1 | |||
| Log (health expenditure) | 0.106 | 0.145 | 0.114 | 0.86 | 0.015 | 0.096 | 0.146 | 1 | ||
| Log (physical capital expenditure) | 0.056 | 0.058 | 0.004 | 0.028 | 0.971 | 0.056 | 0.018 | 0.023 | 1 | |
| Log (social capital expenditure) | 0.031 | 0.038 | 0.074 | 0.156 | 0.033 | 0.916 | 0.087 | 0.196 | 0.035 | 1 |
Descriptive statistics by sources of remittances
| Uganda | Kenya | Nigeria | Burkina Faso | Senegal | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Internal | African | Out-of-Africa | Internal | African | Out-of-Africa | Internal | African | Out-of-Africa | Internal | African | Out-of-Africa | Internal | African | Out-of-Africa | |
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | (11) | (12) | (13) | (14) | (15) | |
| Log (cash remittances) | 4.621 (1.402) | 5.534 (1.624) | 6.686 (1.407) | 5.097 (1.457) | 6.232 (1.682) | 7.013 (1.428) | 5.458 (1.586) | 6.262 (1.11) | 7.069 (1.441) | 3.844 (1.218) | 4.427 (1.255) | 5.51 (1.435) | 6.13 (1.208) | 6.293 (1.33) | 7.295 (1.319) |
| Log (education expenditure) | 4.187 (2.393) | 4.525 (2.616) | 4.469 (3.011) | 3.003 (2.745) | 3.078 (3.02) | 3.511 (3.18) | 4.153 (2.73) | 4.128 (2.611) | 5.152 (2.861) | 2.545 (2.049) | 2.587 (1.933) | 3.738 (1.667) | 3.202 (2.095) | 3.221 (2.184) | 3.793 (2.38) |
| Log (health expenditure) | 3.116 (1.88) | 3.405 (1.813) | 3.361 (2.197) | 2.465 (2.03) | 2.845 (2.243) | 3.442 (2.621) | 3.433 (2.155) | 3.128 (2.476) | 3.795 (2.435) | 3.479 (1.582) | 3.329 (1.673) | 4.057 (2.177) | 3.851 (1.968) | 3.825 (1.935) | 4.328 (2.129) |
| Log (physical capital expenditure) | 0.675 (1.856) | 0.406 (1.27) | 0.898 (2.188) | 0.994 (2.1) | 0.745 (2.077) | 0.701 (1.904) | 1.259 (2.409) | 0.677 (1.958) | 1.291 (2.61) | 0.876 (1.677) | 0.785 (1.547) | 1.129 (2.027) | 0.402 (1.369) | 0.722 (1.804) | 0.639 (1.82) |
| Log (social capital expenditure) | 1.184 (1.768) | 1.326 (1.943) | 1.812 (2.239) | 1.571 (1.952) | 1.643 (2.252) | 1.416 (2.227) | 2.154 (2.516) | 0.952 (2.238) | 1.528 (2.534) | 2.329 (1.991) | 2.329 (2.045) | 4.046 (2.051) | 3.762 (2.401) | 3.675 (2.395) | 4.023 (2.664) |
| Observations | 183 | 44 | 66 | 331 | 82 | 227 | 459 | 37 | 168 | 314 | 327 | 11 | 278 | 152 | 368 |
Alternative estimates of the effect of remittances on household investment decision
| OLS | 2SLS | Imperfect IV | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Human capital | Physical capital (=1 if yes) | Social capital (=1 if yes) | Human capital | Physical capital (=1 if yes) | Social capital (=1 if yes) | Human capital | Physical capital (=1 if yes) | Social capital (=1 if yes) | ||||
| Education (=1 if yes) | Health (=1 if yes) | Education (=1 if yes) | Health (=1 if yes) | Education (=1 if yes) | Health (=1 if yes) | |||||||
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | (11) | (12) | |
| Panel-A: Uganda | ||||||||||||
| Received remittances (=1 if yes) | 0.051** | −0.017 | 0.028 | 0.053* | 1.673** | 0.656 | 0.102 | 1.317** | [0.051, 1.673] | [0.051, 0.656] | [0.035, 0.102] | [0.180, 1.317] |
| (0.025) | (0.026) | (0.022) | (0.031) | (0.684) | (0.468) | (0.262) | (0.619) | (0.002, 3.014) | (−0.043, 1.572) | (−0.029, 0.616) | (0.082, 2.530) | |
| Observations | 1,603 | 1,603 | 1,603 | |||||||||
| Panel-B: Kenya | ||||||||||||
| Received remittances (=1 if yes) | 0.029 | 0.016 | 0.056*** | 0.015 | 0.694*** | 0.649*** | 0.471*** | 1.192*** | (0.722, 0.842) | (0.853, 1.754) | (0.499, 0.625) | (1.436, 2.520) |
| (0.022) | (0.022) | (0.017) | (0.024) | (0.219) | (0.232) | (0.129) | (0.270) | (0.211, 1.792) | (0.293, 3.281) | (0.185, 1.246) | (0.705, 4.498) | |
| Observations | 1,821 | 1,821 | 1,821 | |||||||||
| Panel-C: Nigeria | ||||||||||||
| Received remittances (=1 if yes) | 0.051** | 0.020 | 0.049*** | 0.042* | 0.791*** | −0.387** | 0.708*** | −0.872*** | (0.051, 0.791) | (−0.387, 0.020) | (0.049, 0.708) | (−0.872, 0.042) |
| (0.020) | (0.020) | (0.019) | (0.023) | (0.232) | (0.195) | (0.226) | (0.277) | (0.012, 1.246) | (−0.786, 0.060) | (0.013, 1.150) | (−1.415, 0.087) | |
| Observations | 2,029 | |||||||||||
| Panel-D: Burkina Faso | ||||||||||||
| Received remittances (=1 if yes) | 0.097*** | 0.017 | −0.001 | 0.012 | 0.530*** | 0.501*** | −0.415*** | 1.145*** | (0.361, 0.777) | (0.256, 0.858) | (−1.338, −1.078) | (0.012, 0.675) |
| (0.022) | (0.016) | (0.020) | (0.023) | (0.160) | (0.131) | (0.144) | (0.233) | (0.049, 1.441) | (−0.018, 1.470) | (−2.485, −0.101) | (−0.033, 1.352) | |
| Observations | 1,895 | 1,895 | 1,895 | |||||||||
| Panel-E: Senegal | ||||||||||||
| Received remittances (=1 if yes) | 0.087*** | 0.004 | 0.028* | −0.047** | 0.161 | 0.203 | −0.164 | 0.196 | (0.087, 0.161) | (0.018, 0.203) | (−0.164, 0.028) | (−0.047, 0.196) |
| (0.023) | (0.020) | (0.016) | (0.023) | (0.192) | (0.172) | (0.119) | (0.206) | (0.041, 0.538) | (−0.040, 0.539) | (−0.398, 0.058) | (−0.091, 0.600) | |
| Observations | 1,705 | 1,705 | 1,705 | |||||||||
First stage regression estimates
| Uganda | Kenya | Nigeria | Burkina Faso | Senegal | |
|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | |
| Domestic migration network | 0.004*** (0.001) | −0.445*** (0.090) | 0.646*** (0.130) | 2.411*** (0.436) | – |
| International migration network | – | 0.632* (0.356) | – | 0.312*** (0.068) | −0.535*** (0.113) |
| Household head is female (=1 if yes) | 0.082*** (0.023) | 0.230*** (0.025) | 0.172*** (0.034) | 0.151*** (0.047) | 0.288*** (0.026) |
| Head paid employee (=1 if yes) | −0.078** (0.040) | −0.143*** (0.032) | −0.200*** (0.039) | −0.227*** (0.082) | −0.118*** |
| (0.041) | |||||
| Head self-employed (=1 if yes) | −0.096*** (0.034) | −0.085*** (0.029) | −0.137*** (0.034) | −0.078 (0.055) | −0.078*** (0.030) |
| Head has secondary education (=1 if yes) | 0.061** (0.024) | 0.014 (0.027) | 0.039 (0.031) | 0.058 (0.064) | 0.046 (0.035) |
| Head has above secondary education (=1 if yes) | 0.076** (0.030) | 0.040 (0.032) | 0.018 (0.030) | 0.177 (0.131) | −0.022 (0.048) |
| Head's age 45–60 (=1 if yes) | 0.111*** (0.026) | 0.022 (0.026) | 0.123*** (0.024) | 0.114*** (0.025) | −0.065** (0.026) |
| Head's age is >60 (=1 if yes) | 0.073 (0.060) | 0.125*** (0.045) | 0.212*** (0.044) | 0.212*** (0.037) | −0.017 (0.038) |
| Log household income (in USD) | 0.057*** (0.010) | 0.071*** (0.011) | 0.085*** (0.013) | 0.024* (0.014) | 0.099*** (0.017) |
| Number of children in household | 0.010* (0.005) | −0.001 (0.007) | −0.004 (0.003) | 0.015* (0.008) | 0.017*** (0.004) |
| Number of elderly in household | 0.080* (0.041) | 0.036 (0.026) | 0.026 (0.024) | 0.039** (0.018) | 0.060*** (0.022) |
| Household is in urban area (=1 if yes) | −0.002 (0.024) | −0.070*** (0.025) | −0.066*** (0.023) | −0.075 (0.052) | −0.077*** (0.027) |
| Constant | −0.285*** (0.072) | −0.109 (0.082) | −0.324*** (0.108) | −0.201 (0.137) | −0.364** (0.135) |
| Observations | 1,603 | 1,821 | 2,029 | 1,895 | 1,705 |
| F-statistics (test of excluded instrument) | 7.24 | 16.11 | 24.68 | 20.58 | 22.45 |
| SW Chi-squared statistics (underidentification test) | 7.3 | 32.47 | 24.84 | 41.47 | 22.62 |
| SW F-statistics (weak identification test) | 7.24 | 16.11 | 24.67 | 20.58 | 22.45 |
| Cragg-Donald Wald F-statistic (weak identification test) | 7.78 | 14.68 | 24.44 | 20.06 | 23.19 |
| Hansen's J-statistic (overidentification test of instruments) | – | 0.382 | – | 2.87 | – |
Effect of remittances amount on household investment expenditure
| OLS | 2SLS | |||||||
|---|---|---|---|---|---|---|---|---|
| Human capital | Log (Physical capital expenditure) | Log (Social capital expenditure) | Human capital | Log (Physical capital expenditure) | Log (Social capital expenditure) | |||
| Log (Education expenditure) | Log (Health expenditure) | Log (Education expenditure) | Log (Health expenditure) | |||||
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | |
| Panel-A: Uganda | ||||||||
| Log (Cash remittances) | 0.053* (0.029) | 0.028 (0.023) | 0.035 (0.022) | 0.041* (0.024) | 1.469** (0.638) | 0.779* (0.401) | 0.093 (0.242) | 0.759* (0.388) |
| Mean of the outcome variable | 3.408 | 2.791 | 0.466 | 0.981 | 3.408 | 2.791 | 0.466 | 0.981 |
| Observations | 1,603 | 1,603 | ||||||
| Panel-B: Kenya | ||||||||
| Log (Cash remittances) | 0.023 (0.022) | 0.025 (0.018) | 0.044*** (0.015) | 0.002 (0.017) | 0.686*** (0.253) | 0.188 (0.183) | 0.540*** (0.153) | 0.624*** (0.204) |
| Mean of the outcome variable | 3.115 | 2.742 | 0.680 | 1.556 | 3.115 | 2.742 | 0.680 | 1.556 |
| Observations | 1,821 | 1,821 | ||||||
| Panel-C: Nigeria | ||||||||
| Log (Cash remittances) | 0.070*** (0.019) | 0.032* (0.017) | 0.042** (0.017) | 0.025 (0.019) | 0.633*** (0.162) | −0.498*** (0.144) | 0.504*** (0.151) | −0.522*** (0.162) |
| Mean of the outcome variable | 3.989 | 3.312 | 0.976 | 1.763 | 3.989 | 3.312 | 0.976 | 1.763 |
| Observations | 2,029 | 2,029 | ||||||
| Panel-D: Burkina Faso | ||||||||
| Log (Cash remittances) | 0.087*** (0.020) | 0.033** (0.016) | 0.007 (0.018) | −0.037* (0.021) | 0.500*** (0.159) | 0.508*** (0.147) | −0.275** (0.127) | 0.428** (0.169) |
| Mean of the outcome variable | 2.361 | 3.376 | 0.820 | 2.454 | 2.361 | 3.376 | 0.820 | 2.454 |
| Observations | 1,895 | 1,895 | ||||||
| Panel-E: Senegal | ||||||||
| Log (Cash remittances) | 0.071*** (0.017) | 0.023 (0.015) | 0.025** (0.012) | −0.039** (0.019) | −0.232 (0.149) | 0.192 (0.122) | −0.111 (0.082) | −0.037 (0.150) |
| Mean of the outcome variable | 3.112 | 3.867 | 0.484 | 3.790 | 3.112 | 3.867 | 0.484 | 3.790 |
| Observations | 1,705 | 1,705 | ||||||
Effect of remittances on household investment decision by remittance source
| Internal remittances | Within-Africa remittances | Out-of-Africa remittances | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Human capital | Physical capital (=1 if yes) | Social capital (=1 if yes) | Human capital | Physical capital (=1 if yes) | Social capital (=1 if yes) | Human capital | Physical capital (=1 if yes) | Social capital (=1 if yes) | ||||
| Education (=1 if yes) | Health (=1 if yes) | Education (=1 if yes) | Health (=1 if yes) | Education (=1 if yes) | Health (=1 if yes) | |||||||
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | (11) | (12) | |
| Panel-A: Uganda | ||||||||||||
| Received remittances (=1 if yes) | 0.011 (0.011) | −0.013* (0.008) | −0.025 (0.044) | 0.009 (0.018) | 0.006 (0.007) | 0.009 (0.020) | 0.002 (0.001) | −0.002*** (0.000) | −0.006*** (0.002) | −0.002 (0.009) | 0.004*** (0.001) | 0.010*** (0.002) |
| Mean of the outcome variable | 0.677 | 0.790 | 0.115 | 0.291 | 0.661 | 0.791 | 0.111 | 0.285 | 0.661 | 0.788 | 0.114 | 0.290 |
| Observations | 1,482 | 1,343 | 1,365 | |||||||||
| Panel-B: Kenya | ||||||||||||
| Received remittances (=1 if yes) | 0.083*** (0.009) | 0.095*** (0.014) | 0.061** (0.030) | 0.073*** (0.007) | 0.021*** (0.006) | 0.028*** (0.009) | 0.005*** (0.002) | 0.016*** (0.003) | 0.038 (0.038) | 0.066 (0.048) | 0.021*** (0.006) | 0.009 (0.082) |
| Mean of the outcome variable | 0.581 | 0.654 | 0.137 | 0.409 | 0.572 | 0.648 | 0.112 | 0.393 | 0.573 | 0.657 | 0.114 | 0.381 |
| Observations | 1,363 | 1,114 | 1,259 | |||||||||
| Panel-C: Nigeria | ||||||||||||
| Received remittances (=1 if yes) | 0.127*** (0.006) | 0.073 (0.317) | 0.071*** (0.014) | −0.084*** (0.006) | −0.003** (0.001) | 0.002*** (0.000) | 0.001 (0.001) | 0.002 (0.002) | 0.037** (0.018) | 0.015 (0.025) | 0.004 (0.021) | 0.013 (0.022) |
| Mean of the outcome variable | 0.722 | 0.759 | 0.184 | 0.385 | 0.706 | 0.750 | 0.159 | 0.346 | 0.715 | 0.753 | 0.167 | 0.343 |
| Observations | 1,646 | 1,224 | 1,355 | |||||||||
| Panel-D: Burkina Faso | ||||||||||||
| Received remittances (=1 if yes) | 0.082*** (0.018) | 0.122*** (0.009) | −0.095*** (0.013) | 0.053*** (0.002) | 0.081*** (0.022) | 0.114*** (0.009) | −0.041*** (0.005) | 0.051*** (0.004) | 0.002 (0.005) | 0.002*** (0.001) | 0.000** (0.000) | 0.002 (0.019) |
| Mean of the outcome variable | 0.619 | 0.875 | 0.228 | 0.642 | 0.624 | 0.867 | 0.226 | 0.640 | 0.602 | 0.867 | 0.227 | 0.643 |
| Observations | 1,445 | 1,458 | 1,142 | |||||||||
| Panel-E: Senegal | ||||||||||||
| Received remittances (=1 if yes) | 0.052** (0.025) | −0.006 (0.022) | −0.033 (0.049) | 0.003 (0.037) | 0.014 (0.022) | −0.001 (0.018) | −0.039* (0.024) | 0.027 (0.035) | −0.017 (0.037) | 0.067 (0.056) | 0.003 (0.073) | 0.121*** (0.006) |
| Mean of the outcome variable | 0.636 | 0.813 | 0.083 | 0.740 | 0.622 | 0.810 | 0.091 | 0.736 | 0.648 | 0.815 | 0.092 | 0.732 |
| Observations | 1,144 | 1,018 | 1,234 | |||||||||
Mechanisms of the effect
| Income effect | Labor substitution | Migration expectation | ||||
|---|---|---|---|---|---|---|
| Above median consumption expenditure (=1 if yes) | Own radio (=1 if yes) | Own mobile phone (=1 if yes) | Proportion of adult household member working | Proportion of children aged 6–15 working | Proportion of children aged 6–15 in school | |
| (1) | (2) | (3) | (4) | (5) | (6) | |
| Panel-A: Uganda | ||||||
| Received remittances (=1 if yes) | 0.045*** (0.003) | −0.013 (0.021) | 0.006 (0.020) | −0.234 (0.266) | −0.094 (0.237) | 0.305 (0.464) |
| Mean of the outcome variable | 0.303 | 0.778 | 0.569 | 0.676 | 0.080 | 0.871 |
| Observations | 1,603 | 1,603 | 1,603 | 1,603 | 963 | 963 |
| Panel-B: Kenya | ||||||
| Received remittances (=1 if yes) | 0.154*** (0.011) | 0.136*** (0.051) | 0.001 (0.069) | −0.298*** (0.105) | 0.058 (0.039) | 0.308 (0.930) |
| Mean of the outcome variable | 0.253 | 0.848 | 0.801 | 0.541 | 0.004 | 0.832 |
| Observations | 1,821 | 1,821 | 1,821 | 1,821 | 901 | 901 |
| Panel-C: Nigeria | ||||||
| Received remittances (=1 if yes) | 0.070*** (0.024) | 0.196*** (0.016) | 0.171*** (0.011) | 0.665*** (0.172) | −0.073 (0.057) | 0.984*** (0.274) |
| Mean of the outcome variable | 0.339 | 0.876 | 0.5783 | 0.595 | 0.031 | 0.705 |
| Observations | 2,030 | 2,030 | 2,030 | 2,030 | 1,245 | 1,245 |
| Panel-D: Burkina Faso | ||||||
| Received remittances (=1 if yes) | −0.132** (0.062) | 0.149*** (0.044) | 0.104*** (0.030) | 0.278*** (0.094) | −1.001*** (0.221) | 0.802*** (0.205) |
| Mean of the outcome variable | 0.322 | 0.062 | 0.403 | 0.764 | 0.412 | 0.452 |
| Observations | 1,895 | 1,895 | 1,895 | 1,895 | 1,633 | 1,633 |
| Panel-E: Senegal | ||||||
| Received remittances (=1 if yes) | 0.179*** (0.009) | 0.110** (0.045) | 0.117* (0.064) | −0.205* (0.117) | 0.342 (0.247) | −0.606* (0.353) |
| Mean of the outcome variable | 0.678 | 0.823 | 0.850 | 0.541 | 0.294 | 0.684 |
| Observations | 1,705 | 1,705 | 1,705 | 1,705 | 1,296 | 1,296 |
Summary statistics
| Uganda | Kenya | Nigeria | Burkina Faso | Senegal | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Received Remittances (= if yes) | Not Received Remittances (= if yes) | Received Remittances (= if yes) | Not Received Remittances (= if yes) | Received Remittances (= if yes) | Not Received Remittances (= if yes) | Received Remittances (= if yes) | Not Received Remittances (= if yes) | Received Remittances (= if yes) | Not Received Remittances (= if yes) | |
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | |
| Female household head (=1 if yes) | 0.375 (0.485) | 0.282 (0.45) | 0.425 (0.495) | 0.221 (0.415) | 0.167 (0.374) | 0.074 (0.262) | 0.089 (0.285) | 0.051 (0.221) | 0.431 (0.496) | 0.186 (0.389) |
| Head is paid employee (=1 if yes) | 0.243 (0.43) | 0.254 (0.435) | 0.238 (0.426) | 0.408 (0.492) | 0.214 (0.41) | 0.297 (0.457) | 0.021 (0.143) | 0.033 (0.178) | 0.107 (0.31) | 0.217 (0.413) |
| Head is self-employed (=1 if yes) | 0.546 (0.499) | 0.631 (0.483) | 0.381 (0.486) | 0.383 (0.486) | 0.576 (0.494) | 0.626 (0.484) | 0.904 (0.294) | 0.935 (0.247) | 0.485 (0.5) | 0.533 (0.499) |
| Head has secondary education (=1 if yes) | 0.336 (0.473) | 0.326 (0.469) | 0.262 (0.44) | 0.296 (0.457) | 0.236 (0.425) | 0.214 (0.41) | 0.034 (0.181) | 0.036 (0.187) | 0.142 (0.349) | 0.15 (0.357) |
| Head has above secondary education (=1 if yes) | 0.418 (0.494) | 0.373 (0.484) | 0.251 (0.434) | 0.261 (0.439) | 0.521 (0.5) | 0.545 (0.498) | 0.012 (0.108) | 0.006 (0.078) | 0.055 (0.228) | 0.11 (0.313) |
| Head's age 45–60 years (=1 if yes) | 0.352 (0.478) | 0.224 (0.417) | 0.284 (0.451) | 0.301 (0.459) | 0.433 (0.496) | 0.365 (0.482) | 0.336 (0.473) | 0.306 (0.461) | 0.308 (0.462) | 0.386 (0.487) |
| Head's age >60 years (=1 if yes) | 0.204 (0.404) | 0.112 (0.315) | 0.316 (0.465) | 0.149 (0.356) | 0.284 (0.451) | 0.114 (0.318) | 0.318 (0.466) | 0.157 (0.364) | 0.336 (0.473) | 0.255 (0.436) |
| Log household income | 7.6 (1.091) | 7.181 (1.09) | 7.974 (1.102) | 7.755 (1.253) | 8.574 (0.902) | 8.321 (0.876) | 7.661 (0.787) | 7.591 (0.852) | 8.829 (0.731) | 8.612 (0.813) |
| Number of children in the household | 2.299 (1.998) | 2.045 (1.929) | 1.432 (1.54) | 1.47 (1.614) | 6.057 (3.183) | 6.039 (3.436) | 1.529 (1.545) | 1.492 (1.417) | 4.277 (3.631) | 3.18 (2.934) |
| Number of elderly in household | 0.332 (0.584) | 0.175 (0.433) | 0.583 (0.747) | 0.344 (0.637) | 0.504 (0.722) | 0.253 (0.562) | 0.67 (0.847) | 0.416 (0.675) | 0.703 (0.753) | 0.515 (0.709) |
| Household is in urban area (=1 if yes) | 0.51 (0.501) | 0.487 (0.5) | 0.423 (0.494) | 0.54 (0.499) | 0.456 (0.498) | 0.513 (0.5) | 0.067 (0.25) | 0.058 (0.235) | 0.631 (0.483) | 0.692 (0.462) |
| Remittances amount (in USD) | 776.47 (2,391.68) | 0 (0) | 2,170.59 (10,769.82) | 0 (0) | 1,847.85 (6,819.30) | 0 (0) | 181.86 (427.82) | 0 (0) | 1,890.90 (2,752.23) | 0 (0) |
| Domestic migration network (%) | −1.915 (7.992) | −2.849 (8.077) | 0.106 (0.169) | 0.152 (0.218) | 0.129 (0.082) | 0.108 (0.081) | 0.109 (0.031) | 0.103 (0.023) | 3.486 (2.122) | 3.67 (2.014) |
| International migration network (%) | – | – | 0.037 (0.045) | 0.045 (0.052) | – | – | 0.356 (0.17) | 0.329 (0.163) | 0.101 (0.116) | 0.128 (0.122) |
| Education investment (in USD) | 481.154 (769.14) | 269.02 (585.13) | 464.76 (965.26) | 375.07 (911.61) | 607.35 (944.09) | 360.37 (709.12) | 71.07 (134.21) | 50.86 (109.27) | 143.80 (209.14) | 106.97 (190.90) |
| Health investment (in USD) | 89.89 (131.07) | 48.15 (83.14) | 181.44 (420.75) | 128.95 (363.64) | 157.03 (236.93) | 100.82 (177.72) | 81.46 (116.24) | 74.74 (111.63) | 203.65 (299.5) | 145.53 (244.77) |
| Physical capital investment (in USD) | 91.94 (437.17) | 28.83 (232.32) | 142.41 (745.31) | 56.58 (384.57) | 211.58 (821.46) | 123.18 (591.59) | 19.33 (70.58) | 14.077 (51.69) | 34.77 (134.67) | 18.77 (92.35) |
| Social capital investment (in USD) | 30.01 (72.08) | 17.19 (53.70) | 100.34 (411.34) | 67.70 (327.98) | 186.17 (603.84) | 112.51 (432.07) | 52.20 (92.62) | 57.22 (95.56) | 269.08 (412.80) | 217.64 (346.22) |
| Number of observations | 304 | 1,299 | 789 | 1,032 | 842 | 1,188 | 764 | 1,131 | 839 | 866 |