The poverty effect of remittance flows : evidence from Georgia

• Autor(a) principal: Uzagalieva, Ainura
• Data de Publicação: 2008
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.3/4810
• topic: Economic Growth; Poverty; Georgia

The main purpose of this study is to analyze the poverty effect of remittance flows in Georgia through direct and indirect channels within the context of a modified computable general equilibrium model (CGEM). The main questions of interest are if and to what extent remittance flows contribute to the production and consumption pattern of the poor. Two aspects of poverty reduction are emphasized in this study: (1) the impact of remittances on the aggregated and sectoral economic growth; and (2) the impact of remittances on the poor households, their production and consumption patterns across regions. Apart from households’ factor endowments and consumption patterns, which are reported elsewhere, particular attention is paid to regional differences in terms of market access and transaction costs. The conclusion to be drawn from this study is that, while having a strong macroeconomic growth effect at the aggregated level, emigration and inward remittance flows do not affect all sectors and residents symmetrically. Moreover, they have a rather limited impact in terms of poverty and income inequality.