| By: |
Kikkawa, Aiko (Asian Development Bank);
Gaspar, Raymond (Asian Development Bank);
Kim, Kijin (Asian Development Bank);
Mariasingham, Mahinthan J. (Asian Development Bank);
Zamora, Christian Marvin (Asian Development Bank) |
| Abstract: |
The macroeconomic studies that assess the contribution of international
remittances to the origin countries of migrants use a different definition of
remittances than the microeconomic literature that examines the impact at the
household and community levels. This study overcomes this difference in
definition by integrating household expenditure data into the input-output
analysis. Using the 2018 Family Income and Expenditure Surveys (FIES) of the
Philippines, we find that remittance-financed household consumption and
investment totaled ₱742.2 billion ($14.1 billion) and contributed 3.5% of the
country’s total output, 3.4% of gross domestic product (GDP), and 3.7% of
total employment in 2018. We note that the largest value added is accruing to
the manufacturing sector as it accounts for more than a third of remittance
recipients’ spending basket followed by the trade and agriculture, forestry,
and fisheries sectors, which are closely linked to the manufacturing industry.
The international remittances income reported by households is less than half
(43.8%) of the ₱1.7 trillion ($32.2 billion) aggregate international
remittances reported by the central bank in the same year based on the balance
of payments definition. |
| Keywords: |
international remittance; household expenditure; micro–macro analysis; Philippines |
| JEL: |
C67 D12 F24 |
| Date: |
2024–02–02 |
| URL: |
http://d.repec.org/n?u=RePEc:ris:adbewp:0714&r=dem |