<abstract xmlns="http://www.w3.org/1999/xhtml"><p> This paper examines an effect the remittances have on poverty alleviation of rural households and regions in which exist a large number of the emigrants among population. Remittances represent a significant part of additional income of the household mostly used for consumption and improvement of the living standard. Using data from Living Standards Measurement Survey 2007, an impact of the remittances on the poverty index, depth of poverty and poverty severity in the Republic of Serbia is estimated. Due to limitation of data, counterfactual household consumption is estimated in conditions of remittances absence, where the last is treated as exogenous transfer of money. The results show that remittances have a larger impact to poverty of rural households, especially to the depth and severity of poverty. According to the regions, remittances have the largest impact to the poverty level in East Serbia, but these effects on poverty depth and severity are not statistically significant. The smallest changes in the depth and severity of poverty are noticed in Sumadija.</p></abstract>

This paper examines an effect the remittances have on poverty alleviation of rural households and regions in which exist a large number of the emigrants among population. Remittances represent a significant part of additional income of the household mostly used for consumption and improvement of the living standard. Using data from Living Standards Measurement Survey 2007, an impact of the remittances on the poverty index, depth of poverty and poverty severity in the Republic of Serbia is estimated. Due to limitation of data, counterfactual household consumption is estimated in conditions of remittances absence, where the last is treated as exogenous transfer of money. The results show that remittances have a larger impact to poverty of rural households, especially to the depth and severity of poverty. According to the regions, remittances have the largest impact to the poverty level in East Serbia, but these effects on poverty depth and severity are not statistically significant. The smallest changes in the depth and severity of poverty are noticed in Sumadija.

Effects of Remittances on Rural and Regional Poverty in the Republic of Serbia

Higher School of Professional Business Studies, Novi Sad,

Economic Themes

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Effects of Remittances on Rural and Regional Poverty in the Republic of Serbia"}

This paper examines an effect the remittances have on poverty alleviation of rural households and regions in which exist a large number of the emigrants among...

Effects of Remittances on Rural and Regional Poverty in the Republic of Serbia

Published Online: Apr 26, 2017

Page range: 105 - 120

Received: Dec 21, 2016

Accepted: Jan 16, 2017

DOI: https://doi.org/10.1515/ethemes-2017-0007

Keywords
migration, remittances, poverty, the Republic of Serbia

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Effects of Remittances on Rural and Regional Poverty in the Republic of Serbia

Published Online: Apr 26, 2017

Page range: 105 - 120

Received: Dec 21, 2016

Accepted: Jan 16, 2017

DOI: https://doi.org/10.1515/ethemes-2017-0007

Keywordsmigration, remittances, poverty, the Republic of Serbia

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
migration, remittances, poverty, the Republic of Serbia