Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/50602 
Year of Publication: 
2009
Series/Report no.: 
School of Economics Discussion Papers No. 09,23
Publisher: 
University of Kent, School of Economics, Canterbury
Abstract: 
This paper studies the impact of remittances on the savings behaviour of rural households in China, using a cross-sectional survey. Allowing for endogeneity and left-censoring of remittances, we find that the marginal propensity to save out of remittances is well below half of that out of other sources of incomes. Moreover, we find no evidence of any direct effect of remittances on either capital input or gross output of farm production. These findings are in line with recent studies which conclude that remittances are largely used for consumption purposes by rural Chinese households and there is no link between migration and productive investment.
Subjects: 
rural-urban migration
remittances
savings
instrumental-variables estimation
quantile regression
JEL: 
D12
O15
R23
Document Type: 
Working Paper

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