Lagged effect of remittances on the income distribution in the case of the Philippines

• Main Authors: Almalbis, Brian Paul, Cenidoza, Zcheyenne, Chan, Rainalyn, Hizon, Karen Louise
• Format: text
• Language: English
• Published: Animo Repository 2010
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11750
• Institution: De La Salle University

According to conventional knowledge Oversees Filipino Workers remittances has a very minute effect on the reduction of the income disparity and poverty despite their contribution of wealth to the Philippine economy. Expatriate remittances lead to higher economic development and lessen the income development and lessen the income inequity in the domestic economy yet in lagging time periods. By virtue of the Ordinary Least Squares method through Multiple Regression Analysis and Pearson Correlation, our inquiry intends to provide answer to prove and explain the gaps in the lagging effectiveness of remittances in diminishing income inequality and poverty in the Philippines through the empirical analysis of the micro-data set from Family Income Expenditures Survey. We postulate that remittances are effective in decreasing income inequality in the future generation recipients through major investments in their education, health and entrepreneurship.