Destined to Receive: The Impact of Remittances on Household Decisions in Armenia

15 Pages Posted: 24 Jan 2011

See all articles by David Grigorian

David Grigorian

International Monetary Fund (IMF)

Tigran A. Melkonyan

University of Nevada, Reno

Date Written: January 13, 2011

Abstract

The paper uses data from Armenia to test the implications of remittance flows on behavior of receiving households. We find that remittance-receiving households work fewer hours and spend less on the education of their children. While saving more, these households are not leveraging their savings to borrow from the banking system to expand their business activities. This evidence suggests that the benefits of remittances might be overstated and emphasizes the importance of measuring their impact in a general- rather than a partial-equilibrium context.

Suggested Citation

Grigorian, David A. and Melkonyan, Tigran A., Destined to Receive: The Impact of Remittances on Household Decisions in Armenia (January 13, 2011). Review of Development Economics, Vol. 15, No. 1, pp. 139-153, 2011. Available at SSRN: https://ssrn.com/abstract=1745787 or http://dx.doi.org/10.1111/j.1467-9361.2010.00598.x

David A. Grigorian (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Tigran A. Melkonyan

University of Nevada, Reno ( email )

1664 N. Virginia St
Reno, NV 89557
United States

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