Does remittance affect on behaviour of households? A case study of 12 rural provinces in Vietnam

Abstract

During the past decades, remittance becomes a new capital source in developing countries. This capital flow which is increasing every year in the developing countries derived from origins such as exporting labors, or migration from countries with low income to countries with medium or high income. Remittance considered the stable capital flow for economic growth to labor exporting countries or countries with huge migration, helps reducing poverty through increasing income of households. Until 1986, in most cases remittance received by households living in Ho Chi Minh city in Viet Nam, after 1986 remittance inflow is expanded to households living in rural areas of Viet Nam by labor exporting policy. Up to now, remittance is increasing more and more, and it is also one of tools to alleviate poverty, and to enhance living condition of Viet Nam households. So, the aim of this study will examine the effect of remittance on behaviours of households receiving remittance in rural Vietnam. Estimation of this effect based on impact evaluation method and data set of Vietnam Access to Resources Household Survey (VARHS) in 2006, 2008, and 2010. This data set was carried out by Institute of Labor and Social Sciences, a subsidiary of Ministry of Labor-Invalids and Social Affairs, in 12 rural provinces in North, Middle and South of Viet Nam such as Ha Tay, Lao Cai, Phu Tho, Lai Chau, Dien Bien, Nghe An, Quang Nam, Khanh Hoa, Dak Lak, Dak Nong, Lam Dong, Long An.