The Impact of Remittances on Rural Households’ and Migrants’ Recovery from Shocks: Evidence from Northeast Thailand

Seminar no. 1282
4 September 2024 Time 11:30 – 12:30 hrs.

Speaker: Pongpaiboon Tularag, IPSR Ph.D. Student

Rural households in developing countries are facing shocks related to climate change, unstable economic, and individual-specific shocks that affected their well-being. Shocks or unstable condition makes household vulnerable to poverty because it affects their income and consumption stability. Migration is one of the livelihood strategies of households to minimize the risk and increase the capacity to cope with and recover from shocks via remittances. However, existing research focuses on the impact of remittances on rural household resilience in terms of welfare outcome, but in rural community of Thailand, little is paid attention to the time duration for households to recover to the initial stage. Thus, the aim of this study is to examine the relationship between household’s characteristic, shocks characteristic, coping strategy, migration, and remittances on recovery time in rural northeast community of Thailand. The secondary source of data gathers from Thailand Vietnam Socio-Economic Panel survey (TVSEP) based on three survey waves. Sample households were selected based on the shocks experienced of households in 2016, the decision to send some of their member migrate in 2017, and households experienced shocks again in 2019. In totally there were 1,186 households selected as sample. Cox-proportional hazards regression analysis was used to analyze the censored data of recovery time. The results highlight that households having at least one member migrate internally is positively associated with recovery time. However, remittances that migrant remit to households are negatively associated with recovery time from shocks. The study suggest that policy should be promote on financial literacy and coping strategies program in the context of rural community. Keywords: shocks, coping strategies, migration, recovery

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