International Migration, Remittances and Household Investment: Evidence from Philippine Migrants Exchange Rate Shocks

40 Pages Posted: 27 Mar 2008

See all articles by Dean Yang

Dean Yang

University of Michigan at Ann Arbor - Gerald R. Ford School of Public Policy; National Bureau of Economic Research (NBER); University of Michigan at Ann Arbor - Department of Economics

Date Written: 0000

Abstract

How do households respond to overseas members economic shocks? Overseas Filipinos in dozens of countries experienced sudden, heterogeneous changes in exchange rates during the 1997 Asian financial crisis. Appreciation of a migrant's currency against the Philippine peso leads to increases in household remittances from overseas. The estimated elasticity of Philippine-peso remittances with respect to the exchange rate is 0.60. Positive migrant shocks lead to enhanced human capital accumulation and entrepreneurship in origin households. Child schooling and educational expenditure rise, while child labor falls. Households also work more hours in self-employment, and become more likely to start relatively capital-intensive household enterprises.

Suggested Citation

Yang, Dean, International Migration, Remittances and Household Investment: Evidence from Philippine Migrants Exchange Rate Shocks (0000). The Economic Journal, Vol. 118, Issue 528, pp. 591-630, April 2008. Available at SSRN: https://ssrn.com/abstract=1111799 or http://dx.doi.org/10.1111/j.1468-0297.2008.02134.x

Dean Yang (Contact Author)

University of Michigan at Ann Arbor - Gerald R. Ford School of Public Policy ( email )

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HOME PAGE: http://www.umich.edu/~deanyang/

National Bureau of Economic Research (NBER)

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University of Michigan at Ann Arbor - Department of Economics

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United States

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