Remittance Income: Implications for Household Welfare in a Developing Economy

Abstract

Scholars have emphasized the antecedent role of remittance income on household welfare. The existent literature on remittance and household welfare has however presented mixed findings with other revealing no relation while others otherwise. There is dearth of knowledge regarding remittances in emerging economies. The current study seeks to establish the influence remittances on household welfare using a sample derived from households in Uganda which is a developing economy. The study adopted a panel design using data from 2013 to 2020 obtained from Uganda Bureau of statistics. The study findings reveal that remittance income enhances household welfare. Specifically, remittances enhance the consumption expenditure as well as reducing the poverty of the households. The study shapes the directional strategies by government economists to come up with the relevant measures to improve both internal and external remittances so as to reduce household poverty and enhance the household expenditure to spur economic growth and development. The study used a panel design with time gaps because there wasn't enough data. As a result, time series data may be used in future studies to better understand long-term relationships