Economic and Social Impacts of Remittance on Remittance Receiving Households: The Case of Dessie, Wollo
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2015-06
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Addis Ababa University
Abstract
The objective of this study is to assess the economic and social impacts of remittance together with the aim of identifying the pattern and magnitude of overseas migration and remittance. This study was conducted in Dessie town using methodological triangulation to collect primary data. In this regard, remittance receiving households for survey questionnaire (80 remitted households), FGD and In-Depth interview were selected using a mix of purposive and snowball sampling. The study finding indicated that there are a number of Ethiopians employed abroad. The pattern of Ethiopian overseas migration exhibits unevenness across destination countries. For Dessie oversea migrants, Saudi Arabia and Kuwait accounts the largest share. The inflow of remittance has been increasing as more and more people emigrate. As a result, large amount of remittance is being inflow in the economy of the town and the surrounding areas. The flow pattern of remittance has display unevenness across seasons (months) of a year but the annual figure confirmed an increase in magnitude of remittance. Concerning to the economic and social impact of remittance, this study underlined the positive contribution of remittances for increase in both investment and consumption in general. Specifically, the impact on housing, healthcare and saving are affected positively by remittance. Contrary to this, the impact on products price (inflated prices) and inequality get worse because of remittance. Regarding to the impact on education, it is remaining inconclusive. This is due to although remittance facilitates migration of remitting households from rural areas to urban areas and hence access to better education, negative side of it comes as remittance induced further migration of youngsters by giving less incentive to continue their education above secondary school level
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Geography and Environmental Studies