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IMPACT OF INTERNATIONAL REMITTANCE ON INCOME INEQUALITY: AN EMPIRICAL ANALYSIS ON TURKEY

Year 2019, Volume: 8 Issue: 4, 297 - 310, 05.12.2019

Abstract

Remittances are an important source of financing in developing countries and affect the economies in many ways including economic growth, poverty, investment and consumption expenditures, labor markets, and income inequalities. the impact of remittances on income inequality has been tested in Turkey for the period of 1984-2015 by using cointegration technique (ARDL). Gini index was used as the dependent variable and immigrant transfers, economic growth, and foreign direct investments were used as independent variables in the model. According to the analysis findings, migrant transfers increase income inequalities in the long term

References

  • Acharya, C. P., & Leon-Gonzalez, R. (2012). “The Impact of Remittance on Poverty and Inequality: A Micro-Simulation Study for Nepal”, National Graduate Institute for Policy Studies Discussion Paper, No. 11-26
  • Acosta, P., P. Fajnzylber and J. H. Lopez. 2007. “The Impact of Remittances on Poverty and Human Capital: Evidence from Latin American Household Surveys”, World Bank Policy Research Working Paper, No. 4247
  • Acosta, P; C. Calderon; P. Fajnzylber; and H. Lopez. 2008. “What is the Impact of International Remittances on Poverty and Inequality in Latin America?.” World Development, 36(1), 89–114.
  • Adams, R. (1989). “Worker Remittances and Inequality in Rural Egypt”, Economic Development and Cultural Change, 38(1), 45-71.
  • Adams, R. H, Jr. 1998. “Remittances, Investment, and Rural Asset Accumulation in Pakistan”, Economic Development and Cultural Change, 47(1), 155-173.
  • Adams, R. H. (2006). “International Remittances and the Household: Analysis and Review of Global Evidence”, Journal of African Economies, 15(2), 396-425.
  • Adams, R. H. J. (2004). “Remittances and Poverty in Guatemala”, World Bank Policy Research Working Paper, No. 3418,
  • Adams, R. H. et al. (2008). “Remittances, Inequality and Poverty: Evidence from Rural Mexico”, Research and Policy Perspectives on Internal and International Migration, 101–130.
  • Adams, R., Cuecuecha, A., Page, J. (2008). “The impact of Remittances on Poverty and Inequality in Ghana”, World Bank Policy Research Working Paper, No. 4732
  • Aggarwal, R., Demirguc-Kunt, A. and Martinez Peria M. S. (2005). “Do Remittances Promote Financial Development? Evidence from a Panel of Developing Countries.” World Bank Policy Research Working Paper, No. 3957
  • Agwu, G. A., Yuni, D. N., and Anochiwa, L. (2018). “Do Remittances Improve Income Inequality? An Instrumental Variable Quantile Analysis of the Senegalese Case”, International Migration, 56(1), 146-166. Airola, J. (2007). “The Use of Remittance Income in Mexico”, International Migration Review, 41(4), 850-859.
  • Akcan, A. T. (2019). “Türkiye’de Yatırım ve Askeri Harcamalarının Ekonomik Büyümeye Etkisi: 1982-2017 ARDL Sınır Testi Yaklaşımı”, Uluslararası Yönetim İktisat ve İşletme Dergisi, 15(2), 359-369.
  • Akobeng, E. (2016). “Out of Inequality and Poverty: Evidence for the Effectiveness of Remittances in Sub-Saharan Africa”, The Quarterly Review of Economics and Finance, 60, 207-223.
  • Bang, J. T., Mitra, A., and Wunnava, P. V. (2016). “Do Remittances Improve Income Inequality? An Instrumental Variable Quantile Analysis of the Kenyan Case”, Economic Modelling, 58, 394-402.
  • Bang, J. T., Mitra, A., and Wunnava, P. V. (2018). “Hollowing Out the Middle? Remittances and Income Inequality in Nigeria”, IZA Discussion Paper, No. 11438
  • Barham B., Boucher S. (1998). “Migration Remittances and Inequality: Estimating the Net Effect of Migration on Income Distribution”, Journal of Development Economics, 55, 307-331.
  • Bayir, M. (2019). “Rusya'nın Türkiye'ye Yönelik Turizm Talebi: ARDL Sınır Testi Yaklaşımı”, Yönetim ve Ekonomi, 26(1), 239-261.
  • Beyene, B. M. (2014). “The effects of International Remittances on Poverty and Inequality in Ethiopia”, The Journal of Development Studies, 50(10), 1380-1396.
  • Bouoiyour, J., and Miftah, A. (2014). “The effects of Remittances on Poverty and Inequality: Evidence from Rural Southern Morocco”, MPRA Working Paper, No. 55686
  • Catrinescu, N., Leon-Ledesma, M., Piracha, M., and Quillin, B. (2009). “Remittances, Institutions, and Economic Growth”, World Development, 37(1), 81-92.
  • Chami, R., Fullenkamp, C., Jahjah, S. (2005). “Are Immigrant Remittance Flows a Source of Capital for Development?”, IMF Staff Papers, 52(1), 55–81.
  • Clement, M., (201). “Remittances and Expenditure Patterns in Tajikistan: A Propensity Score Matching Analysis”, Asian Development Review, 28(2), 58–87.
  • Dağdemir, Ö., Kartal, Z., Tinas, R., and Gürbüz, H. (2018). “The Impact of Migration on Poverty and Income Distribution in a Rural Region in Turkey”, Remittances Review, 3(2), 151-176.
  • De la Briere, B., Sadoulet, E., De Janvry, A., and Lambert, S. (2002). “The Roles of Destination, Gender, and Household Composition in Explaining Remittances: An Analysis for the Dominican Sierra”, Journal of Development Economics, 68(2), 309-328.
  • Docquier, F. and Rapoport, H. (2003) “Remittances and Inequality: A Dynamic Migration Model”, IZA Working Paper, No. 808.
  • Du, Y., Park, A., and Wang, S. (2005). “Migration and Rural Poverty in China”, Journal of Comparative Economics, 33(4), 688-709.
  • Dumlu, U., Aydin, O. (2008). “Ekonometrik Modellerle Türkiye icin 2006 Yılı Gini Katsayısı Tahmini”, Ege Academic Review, 8(1), 373-393.
  • Ebeke, C. H., and Le Goff, M. (2011). “Why Migrants' Remittances Reduce Income Inequality in some Countries and not in Others?”, Document De Travail De La Serie, No. 19
  • Edwards, A. C., and Ureta, M. (2003). “International Migration, Remittances and Schooling: Evidence from El Salvador”, Journal of Development Economics, 72(2), 429-461.
  • Feeny, S., Iamsiraroj, S., and McGillivray, M. (2014). “Remittances and Economic Growth: Larger Impacts in Smaller Countries?”, The journal of Development Studies, 50(8), 1055-1066.
  • Gubert, F., Lassourd, T., and Mesplé-Somps, S. (2010). “Do Remittances Affect Poverty and Inequality? Evidence from Mali”, DIAL Working Paper, DT/2010/08
  • Guest, P. (1998), “Assessing the Consequences of Internal Migration: Methodological Issues and a Case Study on Thailand Based on Longitudinal Survey Data”, Migration, Urbanization and Development: New Directions and Issues, Richard Bilsborrow, (ed.), UNFPA, New York.
  • Kapur, D. (2003). “Remittances: The New Development Mantra?”, United Nations Conference on Trade and Development, Geneva.
  • Kifle, T. (2007). “Do Remittances Encourage Investment in Education? Evidence from Eritrea”, GEFAME Journal of African Studies, 4(1).
  • Kóczán, Z., Loyola, F. (2018). How Do Migration and Remittances Affect Inequality? A Case Study of Mexico”, IMF Working Paper, No. 18/136
  • Koechlin, V., and Leon, G. (2007). “International Remittances and Income Inequality: An Empirical Investigation”, Journal of Economic Policy Reform, 10(2), 123-141.
  • McKenzie, D. and Rapoport, H. (2004). “Network Effects and the Dynamics of Migration and Inequality: Theory and Evidence from Mexico”, BREAD Working Paper, No. 63 Milanovic, B. (1987). “Remittances and Income Distribution”, Journal of Economic Studies, 14(5), 24-37.
  • Mundaca, B. G. (2009). “Remittances, Financial Market Development and Economic Growth: The Case of Latin America and the Caribbean”, Review of Development Economics, 13(2), 288-303.
  • Catrinescu, N. et al. (2009). “Remittances, Institutions, and Economic Growth”, World Development, 37(1), 2009,81-92
  • Nguyen, C., Berg, V. . and Lensink, R. (2009). “The Impact of International Remittances on Income, Work Efforts, Poverty and Inequality: Evidence from Vietnam”, MPRA Paper, No. 50313,
  • Osaki, K. (2003). “Migrant Remittances in Thailand: Economic Necessity or Social Norm?”, Journal of Population Research, 20(2), 203-222.
  • Osili, U. O. (2007). “Remittances and Savings from İnternational Migration: Theory and Evidence Using a Matched Sample”, Journal of development Economics, 83(2), 446-465.
  • Pesaran, M. H., Y. Shin, R. J. Smith. (2001). “Bound Testing Approaches of The Analysis of Long Run Relationship”, Journal of Applied Econometrics, 16(3), 289-326.
  • Poprzenovic, A. (2007). Remittances and Income Inequality in Croatia, Lund University School of Economics and Management, Master’s Thesis, Sweeden.
  • Shen, I. L., Docquier, F., and Rapoport, H. (2010). “Remittances and Inequality: A Dynamic Migration Model”, The Journal of Economic Inequality, 8(2), 197-220.
  • Stark, O., Taylor, J. E., and Yitzhaki, S. (1986). “Remittances and Inequality”, The Economic Journal, 96(383), 722-740.
  • Straubhaar, T., and Vâdean, F. P. (2006). “International Migrant Remittances and their Role in Development”, International Migration Outlook, OECD
  • Taylor, John E. Mora, J. Adams, R.H., López-Feldman, A.J. (2005), Remittances, Inequality and Poverty: Evidence from Rural Mexico”, Erişim: 20 Kasım 2019, http://essays.ssrc.org/acrossborders/wp-content/uploads/2009/08/ch6.pdf
  • Vacaflores, D. E. (2018).” Are Remittances Helping Lower Poverty and Inequality Levels in Latin America?”, The Quarterly Review of Economics and Finance, 68, 254-265.
  • Wang, X. (2014). Migration, Remittances, Poverty and Inequality in China: A Counterfactual Analysis, GATE Lyon Saint-Etienne Research Center of Universit Lumire Lyon.
  • Wondimagegnhu, B.A. (2012). “Economic Impact of Rural-Urban Migration on Income and Poverty of Migrant Sending Rural Households: With Evidence from Southern Ethiopia”, Doctoral Dissertation, Ruhr University of Bochum.
  • World Bank (2019). Migration and Remittances, Recent Developments and Outlook, Migration and Development Brief, No. 31.
  • Yang, D., Martinez, C. (2005). “Remittances and Poverty in Migrants’ Home Areas: Evidence from the Philippines”, International Migration, Remittances and the Brain Drain Washington DC, World Bank, No. 81-121.

ULUSLARARASI GÖÇMEN HAVALELERİNİN GELİR EŞİTSİZLİĞİ ÜZERİNE ETKİSİ: TÜRKİYE ÜZERİNE AMPİRİK BİR ANALİZ

Year 2019, Volume: 8 Issue: 4, 297 - 310, 05.12.2019

Abstract

Göçmen havaleleri, gelişmekte olan ülkelerde önemli bir finansman kaynağı olup, ekonomik büyüme, yoksulluk, yatırım ve tüketim harcamaları, işgücü piyasaları ve gelir eşitsizlikleri olmak üzere söz konusu ülke ekonomilerini birçok yönden etkilemektedir. Bu çalışmada, 1984-2015 döneminde Türkiye’de uluslararası göç sonrası gelir transferlerinin gelir eşitsizlikleri üzerindeki etkisi ARDL sınır testi ile araştırılmaktadır. Bağımlı değişken olarak Gini endeksi kullanılmış ve modelde bağımsız değişken olarak göçmen havaleleri, ekonomik büyüme ve doğrudan yabancı yatırımlar yer almıştır. Analiz bulgularına göre, göçmen havaleleri uzun dönemde gelir eşitsizliklerini artırmaktadır.

References

  • Acharya, C. P., & Leon-Gonzalez, R. (2012). “The Impact of Remittance on Poverty and Inequality: A Micro-Simulation Study for Nepal”, National Graduate Institute for Policy Studies Discussion Paper, No. 11-26
  • Acosta, P., P. Fajnzylber and J. H. Lopez. 2007. “The Impact of Remittances on Poverty and Human Capital: Evidence from Latin American Household Surveys”, World Bank Policy Research Working Paper, No. 4247
  • Acosta, P; C. Calderon; P. Fajnzylber; and H. Lopez. 2008. “What is the Impact of International Remittances on Poverty and Inequality in Latin America?.” World Development, 36(1), 89–114.
  • Adams, R. (1989). “Worker Remittances and Inequality in Rural Egypt”, Economic Development and Cultural Change, 38(1), 45-71.
  • Adams, R. H, Jr. 1998. “Remittances, Investment, and Rural Asset Accumulation in Pakistan”, Economic Development and Cultural Change, 47(1), 155-173.
  • Adams, R. H. (2006). “International Remittances and the Household: Analysis and Review of Global Evidence”, Journal of African Economies, 15(2), 396-425.
  • Adams, R. H. J. (2004). “Remittances and Poverty in Guatemala”, World Bank Policy Research Working Paper, No. 3418,
  • Adams, R. H. et al. (2008). “Remittances, Inequality and Poverty: Evidence from Rural Mexico”, Research and Policy Perspectives on Internal and International Migration, 101–130.
  • Adams, R., Cuecuecha, A., Page, J. (2008). “The impact of Remittances on Poverty and Inequality in Ghana”, World Bank Policy Research Working Paper, No. 4732
  • Aggarwal, R., Demirguc-Kunt, A. and Martinez Peria M. S. (2005). “Do Remittances Promote Financial Development? Evidence from a Panel of Developing Countries.” World Bank Policy Research Working Paper, No. 3957
  • Agwu, G. A., Yuni, D. N., and Anochiwa, L. (2018). “Do Remittances Improve Income Inequality? An Instrumental Variable Quantile Analysis of the Senegalese Case”, International Migration, 56(1), 146-166. Airola, J. (2007). “The Use of Remittance Income in Mexico”, International Migration Review, 41(4), 850-859.
  • Akcan, A. T. (2019). “Türkiye’de Yatırım ve Askeri Harcamalarının Ekonomik Büyümeye Etkisi: 1982-2017 ARDL Sınır Testi Yaklaşımı”, Uluslararası Yönetim İktisat ve İşletme Dergisi, 15(2), 359-369.
  • Akobeng, E. (2016). “Out of Inequality and Poverty: Evidence for the Effectiveness of Remittances in Sub-Saharan Africa”, The Quarterly Review of Economics and Finance, 60, 207-223.
  • Bang, J. T., Mitra, A., and Wunnava, P. V. (2016). “Do Remittances Improve Income Inequality? An Instrumental Variable Quantile Analysis of the Kenyan Case”, Economic Modelling, 58, 394-402.
  • Bang, J. T., Mitra, A., and Wunnava, P. V. (2018). “Hollowing Out the Middle? Remittances and Income Inequality in Nigeria”, IZA Discussion Paper, No. 11438
  • Barham B., Boucher S. (1998). “Migration Remittances and Inequality: Estimating the Net Effect of Migration on Income Distribution”, Journal of Development Economics, 55, 307-331.
  • Bayir, M. (2019). “Rusya'nın Türkiye'ye Yönelik Turizm Talebi: ARDL Sınır Testi Yaklaşımı”, Yönetim ve Ekonomi, 26(1), 239-261.
  • Beyene, B. M. (2014). “The effects of International Remittances on Poverty and Inequality in Ethiopia”, The Journal of Development Studies, 50(10), 1380-1396.
  • Bouoiyour, J., and Miftah, A. (2014). “The effects of Remittances on Poverty and Inequality: Evidence from Rural Southern Morocco”, MPRA Working Paper, No. 55686
  • Catrinescu, N., Leon-Ledesma, M., Piracha, M., and Quillin, B. (2009). “Remittances, Institutions, and Economic Growth”, World Development, 37(1), 81-92.
  • Chami, R., Fullenkamp, C., Jahjah, S. (2005). “Are Immigrant Remittance Flows a Source of Capital for Development?”, IMF Staff Papers, 52(1), 55–81.
  • Clement, M., (201). “Remittances and Expenditure Patterns in Tajikistan: A Propensity Score Matching Analysis”, Asian Development Review, 28(2), 58–87.
  • Dağdemir, Ö., Kartal, Z., Tinas, R., and Gürbüz, H. (2018). “The Impact of Migration on Poverty and Income Distribution in a Rural Region in Turkey”, Remittances Review, 3(2), 151-176.
  • De la Briere, B., Sadoulet, E., De Janvry, A., and Lambert, S. (2002). “The Roles of Destination, Gender, and Household Composition in Explaining Remittances: An Analysis for the Dominican Sierra”, Journal of Development Economics, 68(2), 309-328.
  • Docquier, F. and Rapoport, H. (2003) “Remittances and Inequality: A Dynamic Migration Model”, IZA Working Paper, No. 808.
  • Du, Y., Park, A., and Wang, S. (2005). “Migration and Rural Poverty in China”, Journal of Comparative Economics, 33(4), 688-709.
  • Dumlu, U., Aydin, O. (2008). “Ekonometrik Modellerle Türkiye icin 2006 Yılı Gini Katsayısı Tahmini”, Ege Academic Review, 8(1), 373-393.
  • Ebeke, C. H., and Le Goff, M. (2011). “Why Migrants' Remittances Reduce Income Inequality in some Countries and not in Others?”, Document De Travail De La Serie, No. 19
  • Edwards, A. C., and Ureta, M. (2003). “International Migration, Remittances and Schooling: Evidence from El Salvador”, Journal of Development Economics, 72(2), 429-461.
  • Feeny, S., Iamsiraroj, S., and McGillivray, M. (2014). “Remittances and Economic Growth: Larger Impacts in Smaller Countries?”, The journal of Development Studies, 50(8), 1055-1066.
  • Gubert, F., Lassourd, T., and Mesplé-Somps, S. (2010). “Do Remittances Affect Poverty and Inequality? Evidence from Mali”, DIAL Working Paper, DT/2010/08
  • Guest, P. (1998), “Assessing the Consequences of Internal Migration: Methodological Issues and a Case Study on Thailand Based on Longitudinal Survey Data”, Migration, Urbanization and Development: New Directions and Issues, Richard Bilsborrow, (ed.), UNFPA, New York.
  • Kapur, D. (2003). “Remittances: The New Development Mantra?”, United Nations Conference on Trade and Development, Geneva.
  • Kifle, T. (2007). “Do Remittances Encourage Investment in Education? Evidence from Eritrea”, GEFAME Journal of African Studies, 4(1).
  • Kóczán, Z., Loyola, F. (2018). How Do Migration and Remittances Affect Inequality? A Case Study of Mexico”, IMF Working Paper, No. 18/136
  • Koechlin, V., and Leon, G. (2007). “International Remittances and Income Inequality: An Empirical Investigation”, Journal of Economic Policy Reform, 10(2), 123-141.
  • McKenzie, D. and Rapoport, H. (2004). “Network Effects and the Dynamics of Migration and Inequality: Theory and Evidence from Mexico”, BREAD Working Paper, No. 63 Milanovic, B. (1987). “Remittances and Income Distribution”, Journal of Economic Studies, 14(5), 24-37.
  • Mundaca, B. G. (2009). “Remittances, Financial Market Development and Economic Growth: The Case of Latin America and the Caribbean”, Review of Development Economics, 13(2), 288-303.
  • Catrinescu, N. et al. (2009). “Remittances, Institutions, and Economic Growth”, World Development, 37(1), 2009,81-92
  • Nguyen, C., Berg, V. . and Lensink, R. (2009). “The Impact of International Remittances on Income, Work Efforts, Poverty and Inequality: Evidence from Vietnam”, MPRA Paper, No. 50313,
  • Osaki, K. (2003). “Migrant Remittances in Thailand: Economic Necessity or Social Norm?”, Journal of Population Research, 20(2), 203-222.
  • Osili, U. O. (2007). “Remittances and Savings from İnternational Migration: Theory and Evidence Using a Matched Sample”, Journal of development Economics, 83(2), 446-465.
  • Pesaran, M. H., Y. Shin, R. J. Smith. (2001). “Bound Testing Approaches of The Analysis of Long Run Relationship”, Journal of Applied Econometrics, 16(3), 289-326.
  • Poprzenovic, A. (2007). Remittances and Income Inequality in Croatia, Lund University School of Economics and Management, Master’s Thesis, Sweeden.
  • Shen, I. L., Docquier, F., and Rapoport, H. (2010). “Remittances and Inequality: A Dynamic Migration Model”, The Journal of Economic Inequality, 8(2), 197-220.
  • Stark, O., Taylor, J. E., and Yitzhaki, S. (1986). “Remittances and Inequality”, The Economic Journal, 96(383), 722-740.
  • Straubhaar, T., and Vâdean, F. P. (2006). “International Migrant Remittances and their Role in Development”, International Migration Outlook, OECD
  • Taylor, John E. Mora, J. Adams, R.H., López-Feldman, A.J. (2005), Remittances, Inequality and Poverty: Evidence from Rural Mexico”, Erişim: 20 Kasım 2019, http://essays.ssrc.org/acrossborders/wp-content/uploads/2009/08/ch6.pdf
  • Vacaflores, D. E. (2018).” Are Remittances Helping Lower Poverty and Inequality Levels in Latin America?”, The Quarterly Review of Economics and Finance, 68, 254-265.
  • Wang, X. (2014). Migration, Remittances, Poverty and Inequality in China: A Counterfactual Analysis, GATE Lyon Saint-Etienne Research Center of Universit Lumire Lyon.
  • Wondimagegnhu, B.A. (2012). “Economic Impact of Rural-Urban Migration on Income and Poverty of Migrant Sending Rural Households: With Evidence from Southern Ethiopia”, Doctoral Dissertation, Ruhr University of Bochum.
  • World Bank (2019). Migration and Remittances, Recent Developments and Outlook, Migration and Development Brief, No. 31.
  • Yang, D., Martinez, C. (2005). “Remittances and Poverty in Migrants’ Home Areas: Evidence from the Philippines”, International Migration, Remittances and the Brain Drain Washington DC, World Bank, No. 81-121.
There are 53 citations in total.

Details

Primary Language Turkish
Subjects Economics
Journal Section Articles
Authors

Ayfer Özyılmaz

Yüksel Bayraktar This is me

Metin Toprak

Publication Date December 5, 2019
Published in Issue Year 2019 Volume: 8 Issue: 4

Cite

APA Özyılmaz, A., Bayraktar, Y., & Toprak, M. (2019). ULUSLARARASI GÖÇMEN HAVALELERİNİN GELİR EŞİTSİZLİĞİ ÜZERİNE ETKİSİ: TÜRKİYE ÜZERİNE AMPİRİK BİR ANALİZ. Sakarya İktisat Dergisi, 8(4), 297-310.