The Impact of Remittances on Rural Households in Nang Rong, Thailand

Barbara Entwisle, University of North Carolina at Chapel Hill
Yuying Tong, University of North Carolina at Chapel Hill

The impact of out-migration on places of origin depends, in the first instance, on remittance flows back to the origin, and in the second instance, on how those remittances are used. This paper uses prospective survey data collected from almost 5000 rural households in Nang Rong, Thailand to explore the effects of migration and remittances on the subsequent ownership of productive assets and consumer goods. Examples of productive assets in this setting are large and small tractors, itans (a locally made multipurpose vehicle), and sewing machines. Examples of consumer goods are televisions, telephones, and refrigerators. In addition, there are some items that may be either or both, including motorcycles, cars, pickups, or trucks. We examine each of these possibilities separately. Preliminary results indicate that the number of migrants (i.e., previous household members) who sent money in 1993/4 had a positive impact on both productive assets and consumer goods in 2000.