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- Title
The Impact of Remittances on Saving Behaviour and Expenditure Patterns in Vietnam.
- Authors
Hua, Thanh Xuan; Kessels, Roselinde; Erreygers, Guido
- Abstract
We examine the effects of receiving remittances on household saving behaviour and expenditure patterns in Vietnam. We consider the amount of saving, the saving rate, and the share of expenditure, as well as per capita expenditure on education, health, assets, house repairs, food, non-food, and utilities. We apply propensity score matching to data from the Vietnam Household Living Standard Survey (VHLSS) of 2012. We find that remittances have a positive impact on household savings and increase both the amount of saving and the saving rate. As far as expenditure patterns are concerned, our results indicate that receiving households spend more on health, assets, and house repairs, and less on food. This finding suggests that households tend to use remittances productively, with receiving households increasing their investments in human and physical capital. For the economy as a whole, remittances can create more opportunities for the development of services provided by banks, financial institutions, hospitals and healthcare centres, and give incentives to the production of building materials and tangible assets.
- Subjects
VIETNAM; REMITTANCES; HOME repair; PROPENSITY score matching; SAVINGS; STANDARD of living; CONSTRUCTION materials
- Publication
Economies, 2022, Vol 10, Issue 9, pN.PAG
- ISSN
2227-7099
- Publication type
Article
- DOI
10.3390/economies10090223