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Impact of International Migrants’ Remittances on Socio-economic Development: The Case of Hadiya Zone, Hossana Town

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  • Mizan Tepi University

Abstract and Figures

Migration and remittances are always going side by side. This is because; most of the migrants are aimed to cross the border of their country by need of better life for themselves and their family, especially in non-developed countries. This study was therefore, aimed to investigate the impact of international migrants’ remittances on socio-economic development at Hossana town. The study was administered by using both qualitative and quantitative approaches to data collection and analysis. Qualitative method was employed with 35 discussants by using purposive sampling technique and quantitative approach employed with 75 informants by using purposive sampling technique. Throughout this study the researchers was used both primary and secondary sources of data through survey, FGDs, in-depth interviews, key informant interviews and non-participant observation. The major findings indicated that international migrants’ remittances have a positive impact for the socio-economic development in the study area unless some limitations. With regards to social base; because of the people indigenous social relationship was less occurred and instead formal ruled based relationship has been dominantly seen. More importantly it has a very clear positive impact on Hossana’s town economic development, but it should need some corrective actions that have to be taken from the concerned individuals. Therefore, the study recommended that governmental bodies and concerned individuals have to: provide awareness creating trainings for local leaders to keep their indigenous social capital, incorporate indigenous culture and cultural values in education curriculum, anticipate remittances senders rate and prepare plan accordingly, providing investment land for returned and remitted groups according to their capital credibility, providing trainings on basic business making principles and entrepreneurship and negotiate with remittance senders seat countries to have legal money transaction channels. And discuss with the remitted and returned migrants to: establish and invest on value added activities, have a confidence to investing on complex business
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Impact of International Migrants’ Remittances on Socio-economic
Development: The Case of Hadiya Zone, Hossana Town
Melese Abide1 and Negusse Boke2
College of Social sciences and Humanities Department of Sociology, Wachemo University,
Hadiya, Ethiopia
Citation: Melese Abide and Negusse Boke (2022) Impact of International Migrants’ Remittances on Socio-economic
Development:The case of Hadiya Zone, Hossana Town, Global Journal of Arts, Humanities and Social Sciences,
Vol.10, No.8, pp.43-56
ABSTRACT: Migration and remittances are always going side by side. This is because; most of
the migrants are aimed to cross the border of their country by need of better life for themselves
and their family, especially in non-developed countries. This study was therefore, aimed to
investigate the impact of international migrants’ remittances on socio-economic development at
Hossana town. The study was administered by using both qualitative and quantitative approaches
to data collection and analysis. Qualitative method was employed with 35 discussants by using
purposive sampling technique and quantitative approach employed with 75 informants by using
purposive sampling technique. Throughout this study the researchers was used both primary and
secondary sources of data through survey, FGDs, in-depth interviews, key informant interviews
and non-participant observation. The major findings indicated that international migrants’
remittances have a positive impact for the socio-economic development in the study area unless
some limitations. With regards to social base; because of the people indigenous social relationship
was less occurred and instead formal ruled based relationship has been dominantly seen. More
importantly it has a very clear positive impact on Hossana’s town economic development, but it
should need some corrective actions that have to be taken from the concerned individuals.
Therefore, the study recommended that governmental bodies and concerned individuals have to:
provide awareness creating trainings for local leaders to keep their indigenous social capital,
incorporate indigenous culture and cultural values in education curriculum, anticipate
remittances senders rate and prepare plan accordingly, providing investment land for returned
and remitted groups according to their capital credibility, providing trainings on basic business
making principles and entrepreneurship and negotiate with remittance senders seat countries to
have legal money transaction channels. And discuss with the remitted and returned migrants to:
establish and invest on value added activities, have a confidence to investing on complex business.
KEYWORDS: International migrants, social and economic impact, remittances , development
INTRODUCTION
Our country Ethiopia has experienced a significant growth of migrant deployments and inflows of
remittances in recent years. As like the other districts of Ethiopia; migration of young people from
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Hadiya zone to the different parts of the world is very common today. Ethiopians were among the
first African immigrants in post-apartheid South African metropolitan areas and small towns.
Today, tens of thousands of Ethiopians live and work in South Africa. Many come from southern
Ethiopia (Estifanos & Zack, 2019, as cited by Research and Evidence Facility (REF 2020). Above
others the people of Hadiya zone flows especially to the Republic of South Africa and Arabian
countries is escalating and it has multidimensional positive and negative impacts on the life of the
local people. Remittance plays an important role on economic development globally, such as the
impact of remittances on poverty alleviation, education, labor supply, and economic growth
(Adams & Page, 2005; Giuliano & Arranz, 2005; Edwards & Ureta, 2003; Fajnzylber & Lopez,
2008, as cited by Lacheheb, Z., & Ismail, N. W., 2020).
Remittance improves the life of people at the place of origin in many ways. It enables them to
cover daily expenditure for basic needs, to buy land in order to build a house either for living or
rent, to buy car for transportation, to open new business which create sustainable income for the
family of migrants which employs at the same time by providing job opportunities for the
community.
On the other hand, remittances were contributed to negative impact like; inequality, poverty,
education lag, displacement, inflation, irregular migration, poor social relationships among the
people and indigenous cultural changes in the place of origin. Remittances are a positive outcome
of migration and it is the portion of migrants’ workers earnings sent back from the destination of
employment to the origin of the migrant. It plays a significant role in the socio-economic
development of the people and become a focal point in the ongoing debate concerning the viability
of socio-economic development option. Considered that the remittances to be backbone for the
economic growth of the developing countries in different periods of their history (Waqas, 2017, as
cited by Dhakal, S., & Oli, S. K., 2020).
Previous similar studies may contain very general and only offer a partial view, hence to fill this
gap the researchers were used proper sociological theories which link the study to the context of
the study people. The main motivation of this study is to fill the limited gap of information on how
international migrants’ remittances affect social interactions and economic development and to
create awareness on the methods of remittance receive, use, administer and process for both
remittance receivers and senders. The study used to identify how migrants’ remittance can make
economical difference in between remitted and non-remitted groups. It also contributes to previous
studies using numerous low and middle-income countries to further examine remittance-growth
nexus. Therefore, this study will be significant to both scholars and policymakers.
METHODS AND MATERIALS
The study was administered by using both qualitative and quantitative approaches to data
collection and analysis. Qualitative method was employed with 35 discussants by using purposive
sampling technique. Therefore; bank officers, town administration and zonal labor and social
affairs department officers and informal money distributors were the main discussants. And the
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effects as well as how remittances were distributed, prioritized and used by the households were
also discussed by using this approach. This method was also helped the researchers to get a detail
view of information on how residences understand their own actions such as social and economical
relationships.
On the other hand, the researchers were also used quantitative approach with 75 informants by
using purposive sampling technique that employed to measure the type, frequency, size or amount
of remittances, economic level and inflation rate through survey questionnaire. In this case
remittance receiving households, returned migrants, remittances non-receivers were basically used
as informants. Throughout this study the researchers was used both primary and secondary sources
of data through survey, FGDs, in-depth interviews, key informant interviews and non-participant
observation. Thus, the study was employed purposive sampling techniques, by which the
researchers have an accessibility of find the respondents easily and friendly approach for the
research to get reliable data. Finally, some Sociological theories and development models are also
was adopted to administer the study.
RESULTS AND DISCUSSION
Description about the respondents
Table 1. Back ground about the respondents
No
Variables
Response sets
Frequency
1.
Sex
Male
53
Female
22
2.
Age
<20
0
21-31
20
32-42
25
43-53
30
3.
Education
1-4
8
5-8
22
9-12
23
Diploma & above
22
4.
Marital status
Unmarried
12
Married
58
Divorced
5
5.
Job
students
5
Gov’t employee
37
Retires
18
Traders
15
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Table 1 explained above; with regards to sex ratio, the majority, 70.66% were male and 29.33%
of the respondents were female.
According to age-wise, 26.66% of the sampled populations were in between age 21 and 31 years
of age, 33.33% of them were in between 32-42 years of age and the rest 40% were in between 43
and 53 years of age. In terms of education, 29.33% of the sampled population attended between
from grade 5-8, 30.66% of them were attended from grade 9-12, 10.66% of them were attended
from grade 1-4 and the rest 29.33% of them were above diploma level. In terms of marital status,
16% of the sampled populations were unmarried, 77.33% were married and only 6.66% of them
were divorced. Regarding to job, 24% of the sampled respondents were retires, 6.66% were
students, 20% were traders and 49.33% were employed.
Socio-economic impact analysis
For simplicity, the researchers classified the socio-economic development impact of remittance on
the study area as social and economic basis which is presented as follows:
The social impact
To find out the social impact of the international migrants’ remittance on the studied people via
different social factors are presented below.
Education: Migrants’ remittance impact on education can be seen from both negative and positive
angles. The positive impact of remittance in education was first, increase in income induces
migration from rural to urban where there is better educational facilities and access for the
migrants’ family children. On the other hand the negative impact of remittance on youngsters at
high schools or even at their primary schools drop their education to migrate to abroad or else they
are very much bored to concentrate and put effort to further their education. Besides, it is now
becoming common among young females to stop their education and migrate to RSA for marriage
and to the Arabian countries to labor work especially if they have migrants from their family. The
FGD revealed that,
Elementary school and/or high school students open film on cell phone. When you as a teacher
ask them to switch off their cell phones, the students will tell you ‘I have brothers in South Africa,
so I can go there the next day if I want’. If you are not feeling good at my action I don’t concern
about, worry for yourself’’.
Health: According to the KIIs result, the health status of remitted groups and their close relative
were better than before. For the reason that the increase in income facilitated ways to get nutritional
diet, work at disease preventive stage as well and it helped them to pay for better hospital with
better treatment in time of sickness too. The idea even supported by the FGD too, “even people
can borrow for medication purposes to pay latter even though the prevention stage work matters a
lot”.
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Social interaction: With regards to social relationships, that remittance certain factors, such as
change of social norms or values difference across remitted and non-remitted groups would helped
by engendering information in order to address the present negative impact on good social
interactions in the study people. This was happened because of there was high formal relationship
based on rule of formal law and control and reflecting foreign cultural trends rather than preserving
one’s own indigenous cultural values and norms like; solidarity, respect each other, informal
social tie, cooperatives, help each other and the like. (FGDs and KIs)
The economic impact analysis
Table 2. Respondents’ perception about impact of remittance on economic growth
Question
response
Count
Percentage
Do you think that is there rapidly
economic growth in the last recent
years at Hossana town?
Yes
72
96
No
3
4
I Do not know
0
0
Sources: Own survey, 2019
The survey result on table 2 has confirmed that the majority 96% of the respondents agreed that
Hosanna’s town was rapidly grown in the last recent years. The increase in income of remitted
first, advance their consumption and investment then propagates to non-migrants via direct
channels like trade exchange, investment, employment rather than through indirect channels which
affecting the revenue of the town from taxes and fees. Increasing in governments’ revenue in turn
creates additional potential for provision of urban services. This at the end will better off the
welfare of non-migrants and hence inflates the growth of the town.
The FGDs reveal that the main reasons for growth are; emigration through via increasing
remittance, return migrants and their capital, increased number of investors and capital, asphalt
construction, rural to urban migration, change in work habit of the residents, increasing
competition among the residents of the town to accumulate capital and more or less increased
entrepreneurial activities.
Table 3. The overflow effect of remittance on development activities
Question
Count
Percentage
Is there a surplus effect of
remittances on
development activities?
65
8
2
86.66
10.66
2.66
Sources: Own survey, 2019
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This indicated the income from remittance first changes investment and consumption pattern of
remitted then spillover to non-remitted. The survey results in table 3 strengthens this fact by
indicating majority (86.66%) respondents said “yes”, believing that the consumption and/or
investment activities of remitted has a spillover effect to non-remitted and then affecting the
growth of the town.
As the survey result revealed that in the last five years the town tax collecting activity, trade and
business activity has increased due to remitters’ money increased.
Therefore, its result has increased number of hired civil servants, increased number of service
providing institutions, improved infrastructures and facilitations Hossana town administration
mayor office (HTAMO, 2019).
Table 4. Respondents’ perception regarding the impact of remittance on investment
Questions
Response
Count
Percentage
How common the remittances to be
used in productive investments?
Very common
3
4
Common
10
13.33
Rare
62
82.66
Not common at all
0
0
In what sector did you invested by
larger proportion?
Agriculture
Service
Do not know
12
61
2
16
81.33
2.66
Sources: Own survey, 2019
The survey resulted in table 4 highlighted that it is (82.66%) of the respondents to used remittance
on rarely investment in productive investment. In this view service sector receives the lion share
(81.33%) of the investment spending while the rest goes for agriculture and industry sectors.
The FGD participants argued that remittance has highly fueled the investment activities in the
town. The idea is strongly reinforced by the in-depth interviews made with the mayor and the
municipal head suggesting that remittance has ventured in to establishment of a number of
investment projects. Nonetheless, the involvement of remitted or returnees on big scale investments
is far from desirable. Rather they usually tend to invest on transport sector, shops, and
supermarkets, boutiques, building equipments, cafeteria and hotel service. However, return
migrants are more frequently involved in town land and service related business. In this respect,
returnees buy land, which could be agricultural or inner town to either develop it or sell without
developing. Investing on construction of commercial business buildings appears to be another
area that remittance contribute in mitigating the housing problem while augmenting business
activity.
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Table 5. Number of vehicles from 2015- 2019
vehicles
2015
2016
2017
2018
2019
Total
Cars
42
64
122
360
400
988
Motor cycles
19
37
120
156
246
578
Bajaj
62
96
182
784
986
2110
Total
123
197
424
1300
1632
3676
Sources: HZTD, 2019
According to the information from Hadiya Zone transport department as shown in table 5 above,
in the last five years there are 3676 vehicles were introduced to the transport sector. As result, a
significant change has been observed in the sector. It is very common for most returnees and those
at RSA to invest in the transport industry. Investing in transport does not require much business
knowledge and therefore all they need to do is buy vehicle and hire a driver or themselves; this is
why returnees and Diasporas at RSA prefer to spend their assets for investment on the transport
sector. According to the head department of Hadiya zone transport “transport sector investment,
however, is faces challenges. First, there are repeated accidents causing loss of life and property.
The loss gets worse for accidents occurring in non-insured vehicles.
Second, at current stand, there is imbalance between the supply and demand for transportation in
the town. That is, the public transportation sector in the town is operating in an un-optimal
manner”. In general, the increase in transportation sector created and/or strengthened linkages that
can promote marketing connection and enhanced resource flow between Hosanna town and the
surrounding areas.
Table 6. Respondents’ perception regarding the impact of remittance on consumption
Question
Response
Count
Percentage
What effect has remittance on
purchasing of goods/consumption?
Highly improved
61
81.33
Moderately improved
10
13.33
Not changed
4
5.33
I don’t know
0
0
Sources: Own survey, 2019
With regard to consumption, shown in table 6 above 81.33% of the respondents believed that the
remittance has a positive impact by improving the purchasing power of goods whereby increasing
consumption. While the remaining 5.33% said that, the situation has not been changed in either
direction positively or negatively. Therefore, although it is difficult to generalize at town level,
there is a tendency that increases in aggregate income, in this case due to remittance and returned
migrants, will increase aggregate consumption of the returnees, remitted in particularly and the
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society in general. As manifestation of this way, at least the consumption pattern of people linked,
in one way or the other but, to remitted group is much better than from the others.
Table 7. Respondents housing status and means of owning
Questions
Response
Count
Percentage
Have you owned or rent this
dwelling?
Own
62
82.66
Rent
13
17.33
Other
0
0
How did you owned this
dwelling?
Build
38
50.66
Buy
37
49.33
Other
0
0
Sources: Own survey, 2019.
With regard to housing and means of owning status, as it can be seen from table 7 above most of
the respondents owned houses and the remaining are rented houses. More importantly, from those
82.66% of the respondents who reported as having the ownership status and (17.33%) of them are
living in rent house. Around, 50.66% own by building new houses while the 49.33% gained the
title deed through buying. So it is evident that the remittance inflow promoted construction of new
houses that increased the existing housing stoke.
In-depth interview and FGD strongly agreed that housing is the most affected sector due to
migrants’ remittance and returnees’ activity. Surprisingly, the number of house and quality of the
houses is increasing alarmingly. Once residents get money, they buy/build new houses or rebuild
previously mud walled houses using cement, bricks and other hard substances. Building with
cement is not just limited to houses only but also includes building fence. On the other hand, there
are many people flocking from the surrounding areas as an individual and family to the town. This
flock to the town, especially family move, exert pressure on the existing housing stoke which in
turn increases rental price and building of new houses. These immigrants to the town from the
hinterland, particularly those that whose relatives are in RSA, have the high purchasing power
allowing them to buy or build new houses either inner town and/or fringes. Inner town buildings
facilitated urban in-fill through utilization of previously idle space into different uses.
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Table 8. Respondents’ perception in relation to economic inequality
Question
Response
Count
Percentage
Is there existence of
economic differences among
the returned, remitted and
non-remitted?
Yes
75
100
No
0
0
Do not know
0
0
Sources: Own survey, 2019
Nowadays, income inequality is clearly seen at Hossana town among the returnees, the remitted
and the rest section of the society. Although inequality is inevitable in any society, the existence
of remittance and returnees at Hosanna town has widened the existing gap.
Table 8 shows that respondents’ perception with regard to whether there is difference among
households that receive money from abroad, returnee migrants and those who do not. The survey
result shows that, all respondents believed there is a difference between those remitted and those
who do not receive remittance. Reflecting on the ways this difference manifested itself respondents
noted the following points. Remitted residents have better purchasing power than non-migrants
do. This therefore increased willingness to pay and hence they can afford any product.
Accordingly, clear difference is seen in terms of housing quality, home equipment, clothing,
health, education, ceremony and other forms of spending.
A larger section of the society inclined to consider this as a negative impact of remittance. The
existence of income inequality is highly seen in youngsters discouraging them from going to
school, and reduced educational participation, which is a serious problem. This is because their
mind set up is preoccupied with migration to RSA and Arebs being rich within a short period rather
than spending their time and money in schooling.
Table 9. Remittance impact on inflation
Question
response
count
percentage
What effect has
remittance on
inflation?
Very high
Intermediate
low
75
0
0
100
0
0
Sources: Survey and KIIs, 2019
However, inflation is macroeconomic variable and needs national study; there is price escalation
in all kinds of goods and services that create high inflation at Hosanna town at large according to
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the respondents replayed in table 9 above. The effect of remittance resulted in existence of
extravagancy and unplanned consumption with no or very less savings should open a room for
inflation which making worthy life for fixed income receivers and public hired. Even without
having any supply shortage, the prices of product will artificially be manipulated.
Therefore, as the amount of money from the RSA and Arabs increases inflation rates more and
more. As shown in table 9, all of them, 100% of respondents believed that remittance has negative
impact through inflation; no individual perceived that remittance has positive impact at Hosanna
town via inflation.
“Women in the market when they purchase Teff or other consumption goods, they pay as such the
price of sellers told them without any controversy, for this reason their names are said okay men
(yihunes) people in Amharic by the other group of people”. (KIIs)
Table 10. Investment types of the respondents
Question
response
count
percentage
Is your investment
(company) going on
by share or private?
Why?
By share
Private
0
75
0
100
Source: our survey, 2019
As shown in the above table of 10 from the respondents’ information all the returned migrants and
remitted groups conducted their investment/company by using basically sole-propertinorship
method rather than using Share Company by collaboration. As the respondents reveals that to be
working together they do not have any awareness on the importance of Share Company business
and them loss trusts in each of themselves and governmental bodies too.
Remittance, special expansion and transmission channels
Remittance and spatial expansion
This component of the urban growth is one of the most affected aspects at Hosanna’s town special
expansion. This is because of the recent spatially observed changes so far in a way that the
municipality is totally challenged to control spontaneously growing squatting, which in turn posed
pressure on delivery of municipal and state services to these areas. A significant credit, if not all,
for the spontaneous spatial expansion of the town, goes to remittance and return migrants’
activities.
According to the Hosanna municipality head, for a decade and more there were nothing compared
to remittance in bringing a breakthrough in the economy of the town. Expansion of town to
formerly agricultural land through continuous construction of illegal houses is now becoming the
usual activities for someone who returned and/or somebody receiving remittance from RSA and
Arabs. In general, remittance and return migrants are the main factors behind the current sprawl
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and unchecked squatting. Currently the town administrative area has gone beyond the delineated
area and outstretched in to the territory of surrounding Lemmo woreda thereby decreasing the plan
of the town. Hosanna’s spatial expansion is now changing agricultural land into build up area.
Remittance and transmission channels
Banks: To describing the banks activity, the managers of Batena, wachemo and Seleme branch of
commercial bank of Ethiopia said, since 2015 on significant amount of currency has been flowing
to the town, and customers have been depositing large amount of money. The amount of money
circulating in the bank within these five years is much more than that we have ever seen before, or
since the establishment of the bank. This might be because of the rapid increase in remittance
money from the Republic of South Africa and some Arabian countries.
Agents: However, pocket transfer appears to be the main channel of transfer particularly from the
RSA to Ethiopia. Once the money reaches Addis Ababa by passengers from the RSA,
representatives of the agents working in Addis Ababa receive the cash in USA dollar and then
exchange it often in black markets. The next step in this informal transmission channel is
transferring the birr in to the current accounts of the agents working at Hosanna. The agents at
Hosanna usually have accounts in more than one bank, hence order check from their current
account. The remitted people, possibly from Hosanna and Hadiya zone, the neighboring areas,
then manage their money.
CONCLUSION AND RECOMMENDATIONS
Conclusion
The study was assessed the social impact of remittance as human capital formation; the health
impact, the education impact and the impact of social relationships are the fore mentioned. From
these, the health impact found to be positive while the impact on education is considered as both
negative and positive effect. With regards to social relationships there is high formal relationship
based on rule of law and control rather than solidarity, respect each other, informal social tie,
cooperatives and the like.
On the other hand, the study was also aimed to identify economic impact of the remittance on the
study people. The economic impact therefore has both positive and negative impacts. The study
was formulated to identify the special expansion impact and the impact on the pattern of
transmission. The spatial impact also discussed under the overall impact of migrants’ remittance.
Consequently, the effect on spatial expansion is very significant. Town sprawling, as it does for
others, making Hossana amorphous which in turn will create various problems ranging from
impeding provision of basic and municipal service to fully preventing Hosanna’s development.
Regarding the transmission pattern, the researchers identified that a very large amount of
remittance is being added in the economy of the town. The inflow remittance has been increasing
as more and more people emigrate to the Arabs and the RSA. Although the flow pattern reveals
disproportion among the year of months and the annual figure confirmed a rapid increase of
remittance both in terms of the magnitude and pattern of flow.
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Recommendations
As the study findings shown, with regards to social problems it is better the governmental bodies
and concerned individuals to create awareness for the students and their families; the students have
to attend their education properly. It is important to keep their indigenous social values to maintain
their social interaction rather than reflecting rule based relationship and/or foreign cultural trends.
In terms of economic impact, government bodies therefore should properly discuss with returnees
and remittance receivers to utilize untapped potential resulting from unwillingness to working
together to develop the spirit of working together in establishing Share Company, Small and large
industry, big investment. Also it is recommendable to offer advice and trainings rather than only
investing in similar and non-cooperatives sector like transportation, hotel and cafeteria. To
minimize similarity, regarding the type of investment, the responsible government bodies should
facilitate ways of providing some basic business and entrepreneurial trainings. By so doing the
town will extort better out of the remittance and return migrants’ activities.
In other words, return migrants and remittance receivers should invest on value adding activities
and/or job opportunity creating activities such as dairy farming, beef farming, poultry, investing
on complex business oriented buildings, developing the industry sector, investing in honey bees,
crops and vegetables etc.
According to spacial expansion, there is high migration rate to Hossana town from the surrounding
rural and small towns which expose for squat. In this respect, the municipal providing house
constructing land in the form of organizing civil servants from the number eight to fourteen at least
to minimizes the severity of the problem. With regards to transmission channel, through black
market exchange promotes illegality. Therefore government should take correction measures
against rampant informalities observed in remittance flow channel.
Acknowledgment
We would like to express our appreciation and deepest gratitude for Wachemo university research
and community service vise president office to give this opportunity.
Our deepest gratitude and appreciation extends to who helped us morally, financially and giving
edition and criticism on our study. Our sincere gratitude goes to the Hadiya Zone administration
office officers, Hossana town administration, Hossana town administration municipality, Hadiya
zone social & labor affairs department, Hadiya zone transport department, Batena branch,
Wachemo branch and Seleme branch commercial bank officers who provided us reliable primary
and secondary data. Finally, we would like to thank everybody who had contributed for the
successful completion of this study.
Global Journal of Arts, Humanities and Social Sciences
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Online ISSN: 2052-6369(Online)
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List of tables
Table 1. Back ground about the respondents ................................................................................ 60
Table 2. Respondents’ perception about impact of remittance on economic growth ................... 62
Table 3. The overflow effect of remittance on development activities ........................................ 62
Table 4. Respondents’ perception regarding the impact of remittance on investment ................. 63
Table 5. Number of vehicles from 2015- 2019 ............................................................................. 64
Table 6. Respondents’ perception regarding the impact of remittance on consumption .............. 64
Table 7. Respondents housing status and means of owning ......................................................... 65
Table 8. Respondents’ perception in relation to economic inequality .......................................... 66
Table 9. Remittance impact on inflation ....................................................................................... 66
Table 10. Investment types of the respondents ............................................................................. 67
ResearchGate has not been able to resolve any citations for this publication.
Article
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This study investigates the relationship between remittance and economic growth in a panel of 93 low and middle-income countries using annual data from 2009 to 2017. The estimated model using system GMM (SYS-GMM) revealed that remittance has a significant negative impact on growth after removing outliers. However, the result before outliers was indicating a negative but nonsignificant relationship between remittance and growth. The results confirm that remittance flow leads to deteriorating economic growth in the receiving countries. Therefore, these findings suggest that countries with a big size of remittance are predicted to be associated with a low level of growth which indicates a remittance curse effect on the countries' level of economic growth.
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Full-text available
Background: Remittance remains a key source of external resource flows for developing countries. Remittance inflows are the addition of migrant remittance inflow and compensation of employees which include current transfers by migrant workers, with wages and salaries earned by non-resident workers. Remittance is an essential aspect of leveraging remittance to promote economic development. In the context of Nepal, remittance recipient households tend to spend more on consumption, health and education as compared to remittance non-receiving households. Objective: This study examines the impact of remittances on the consumption and investment in the context of province five of Nepal. Methods: This study is based on primary sources of data with 570 observations. The primary survey was used to extract the information from the respondents regarding the remittance amount, consumption and investment of individual household from the families of Rupandehi, Dang and Rolpa districts of Nepal whose family member has been working out of country. The regression models are estimated to test the significance and impact of remittances on the investment and consumption. Consumption and investment are the dependent variables. The independent variables are remittance, annual domestic income, household size, family residential area and level of education. Results: The results show that there is a positive relationship between remittances and consumption. This indicates that higher the amount of money inflow as a remittance, higher would be the consumption. Similarly, there is positive relationship domestic income and consumption which indicates that higher the level of domestic income, higher would be the consumption. Likewise, there is a positive relationship between household size and consumption. It indicates that larger the members in a family, higher would be the consumption. The result also reveals that there is a positive relationship between level of education and consumption. It indicates that higher the level of education, higher would be the consumption. Conclusion: Remittance has been leading to the consumption and investment behavior of rural household in province five. Remittance followed by family size is the most influencing factors that explain the changes in consumption and investment of families in province five of Nepal. Implication: This study can be useful to concerned authorities for further planning of proper investment of remittance.
Article
Despite their importance, there has been little analysis and even less agreement about the effects of international remittances on the economies of labor-exporting countries. Do households with migrant workers "squander" the money earned abroad on newly desired consumer goods? Are remittances largely earned by the sons of already well-to-do households? Do remittances increase the degree of income inequality between richer and poorer rural households? In this report, the author examines these issues from the standpoint of a small area of rural Egypt. Adams uses income data from households with and without migrants to determine the effects of remittances on poverty, income distribution, and rural development. The study is based on a survey of 1,000 households conducted in 1 986/87 in three villages in Minya Governorate, a province about 250 kilometers south of Cairo. In a second round of the survey, 150 selected households were interviewed about their spending behavior. Although the research is based on rural Egypt, its findings are relevant for policymakers in other labor-exporting countries.
Migrants' Remittances and Development: Myths, Rhetoric and Realities. International Organization for Migration (IOM)
  • B Ghosh
Ghosh, B. (2006). Migrants' Remittances and Development: Myths, Rhetoric and Realities. International Organization for Migration (IOM).
Urban agriculture and the livelihoods of the poor in southern African: Case studies from Cape Town and Pretoria, South Africa and Harare, Zimbabwe. Paper presented at the International Symposium' 'urban agriculture and horticulture: the linkage with planning
  • A Martin
  • N Oudwater
  • K Meadows
Martin, A., Oudwater, N. & Meadows, K. (2000). 'Urban agriculture and the livelihoods of the poor in southern African: Case studies from Cape Town and Pretoria, South Africa and Harare, Zimbabwe. Paper presented at the International Symposium' 'urban agriculture and horticulture: the linkage with planning'. 7-9 July 2000, Berlin, Germany. Migrant Remittance Flows, Findings from a Global Survey of Central Banks. World Bank Working Paper, No. 194, World Bank.
Rural migration and livelihood security in Ghana. Sussex Migration Working Paper
Social Policy and Development Programme, Number 34, October 2007. Geneva, Switzerland:UNRISD Van der Geest, K. (2003). Rural migration and livelihood security in Ghana. Sussex Migration Working Paper.