This paper uses a nationally-representative household survey from Ghana (2005-06) to analyze how the receipt of internal remittances (from Ghana) and international remittances (from other countries) affects the marginal spending behavior of households on various consumption and investment goods. Controlling for endogeneity and selection, it finds that households receiving remittances do not spend more at the margin on food, education and housing than households that receive no remittances. Households in Ghana treat remittances just like any other source of income, and the paper finds no changes in marginal spending patterns for households with the receipt of remittances.

Publication Details

Title
Remittances, Consumption and Investment in Ghana
Authors
Adams, Jr., Richard H, Cuecuecha, Alfredo, Page, John
Publisher
World Bank
Publish Date
2008
Citation
Adams, Jr., Richard H, Cuecuecha, Alfredo, Page, John, Remittances, Consumption and Investment in Ghana (World Bank, 2008).
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