Author

  • Syden Mishi

    • University of Fort Hare, South Africa
    • South Africa

  • Lilymore Mudziwapasi

    • University of Fort Hare, South Africa
    • South Africa

Abstract

Most developing countries are riddled with socio-economic woes that pose a challenge to livelihoods. These challenges negatively affect income levels of individuals and households, limiting their access to economic opportunities. Households often strategise to sustain their livelihoods, and one of such option is migration of a member, domestically or internationally. Migration can be individual or household strategy for survival therefore remittances have a role to play in adjusting the household income. Making use of ordinary least squares estimation techniques, this article examines how families use migration as a survival technique based on survey data from small mining town of Chegutu located in Mashonaland West Province of Zimbabwe. We found out that remittances go a long way in providing income for basic services like municipal services, food, medical expenses. Furthermore, remittances also tend to influence behavioural change among households- making them consume more status oriented goods and services. The findings have implications to how policy makers view migration and development- migration should not be viewed negatively as in the past since it can help meet developmental needs of the receiving community through sustainability of family livelihoods. Policy should rather necessitate frictionless flow of these funds by reducing costs and unnecessary regulatory requirements.

Keywords

References

  • Abdelali-Martini, M. & Hamza, R. (2014). How Do Migration Remittances Affect Rural Livelihoods in Dry lands? J. Int. Dev., 26, 454–470.
  • Acosta, P. (2006). Labour supply, school attendance, and remittances from international migration: the case of El Salvador, Policy Research Working Paper Series 3903, The World Bank.
  • Adams, R. H. Jr. & Cuecuecha, A. (2010). The Economic Impact of International Remittance on Poverty and Household consumption and Investment in Indonesia, Policy Research Working Paper Series 5433, The World Bank, Washington DC.
  • Adams, R. H. (1994). Non-Farm Income and Inequality in Rural Pakistan: A Decomposition Analysis. The Journal of Development Studies , 31(1), 110-133.
  • Adams, R. H. & Page, J. (2005).Do international migration and remittances reduce poverty in developing countries? World Development , 33(10), 1645–1669.
  • Adams, R. H. & Cuecuecha, A. (2010). Remittances, household expenditure and investment in Guatemala. World Development , 38, 1626–1641
  • Adams, R. H. (1989). Worker remittances and inequality in rural Egypt. Economic Development and Cultural Change , 38(1), 45–71.
  • Adams, R. H. (1991). The economic uses and impact of international remittances in rural Egypt. Economic Development and Cultural Change , 39(4), 695–722.
  • Adenutsi, D. E. & Ahortor, C. R. K. (2010). International remittances – the panacea for underdevelopment? A comparative panel data analysis of Sub-Saharan Africa and Latin America. Journal of Applied Sciences , 10(4), 235-247.
  • Airola, J. (2007). The Use of Remittance Income in Mexico. International Migration Review , 41, 850–859.
  • Bandow, D. (2012). Federal Spending: Killing the Economy with Government Stimulus; Forbes Available online: http://www.forbes.com/sites/dougbandow/2012/08/06/federal-spending-killing-theeconomy-with-government-stimulus/ ; [Accessed on 21-10-2014]
  • Bracking, S. & Sachikonye, L. (2006).Remittances, poverty reduction and the informalisation of household wellbeing in Zimbabwe; Working Paper No. 45,
  • Bracking, S. & Sachikonye, L. (2010). Migrant Remittances and Household Wellbeing in Urban Zimbabwe. International Migration , 48(5).
  • Calero, C., Bedi, A. S. & Sparrow, R. (2008). Remittances, Liquidity Constraints and Human Capital Investments in Ecuador, The Hague, Institute of Social Studies, Working Paper nr 458.
  • Carney, D. (1998). Sustainable rural livelihoods: What contribution can we make? London: DFID.
  • Casimira, A. (2003). The Role of Women in Developing a Culture of Peace. Paper presented at the Ministry of Reconciliation and Unity workshop titled The Hand that Rock the Cradle holds the key to a United Fiji
  • City Population. (2012). City Population; http://www.citypopulation.de/
  • Chambers, R. & Conway, G. R. (1991). Sustainable rural livelihoods: practical concepts for the 21st century. IDS Discussion Paper 296.
  • Chami, R., Fullenkamp, C. & Jahjah, S. (2003). Are immigrant remittance flows a source of capital for development? IMF working paper 03/189, International Monetary Fund, Washington, DC.
  • De Haas, H. (2008).The internal dynamics of migration processes. Paper presented at IMSCOE Conference on Theories of Migration and Social Change. St Anne’s College, University of Oxford, 1-3 July 2008.
  • Ellis, F. (1998).Household Strategies and Rural Livelihood Diversification. Journal of Development Studies , 35(1), 1-38.
  • Escobal, J. (2001).The Determinants of Nonfarm Income Diversification in Rural Peru. World Development , 29(3), 497-508.
  • Finmark Trust. (2012).SADC Remittance Flows Report
  • Freud, C. & Spatafora, N. (2005). Remittances: transaction costs, determinants, and informal flows; Policy Research Working Paper No. 3704, The World Bank, Washington, DC.
  • Garip, F. (2007).The Impact of Migration and Remittances on Wealth Accumulation and Distribution in Rural Thailand, Department of Sociology, Havard University, Available Online: http://www.wcfia.harvard.edu/sites/default/files/garip_development.pdf
  • Gupta, S., Pattillo, C. & Wagh, S. (2009).Impact of Remittances on Poverty and Financial Development in SubSaharan Africa; International Monetary Fund; IMF Working Paper WP/07/38
  • Gupta, S., Pattillo, C. & Wagh, S. (2007). Making Remittances Work for Africa, Finance and Development, June 2007, 40 – 43.
  • Gustafsson, B. & Makonnen, N. (1993).Poverty and Remittances in Lesotho. Journal of African Economies , 2(1), 49–73
  • Halliday, T. (2006).Migration, Risk and Liquidity Constraints in El Salvador. Economic Development and Cultural Change , 54(4), 893–925.
  • Hammond, l. (2013). Family Ties: Remittances and Livelihoods Support in Puntland and Somaliland; Food Security and Nutrition Analysis Unit – Somalia; School of Oriental and African Studies (SOAS), University of London
  • Hampshire, K. (2002). Fulani on the Move: Seasonal Economic Migration in the Sahel as a Social Process. The Journal of Development Studies , 38(5), 15-36.
  • Hecht, S., Kandel S., Gómez, I., Cuéllar, N. & Herman, R. (2006). Globalization, forest resurgence, and environmental politics in El Salvador. World Development , 2, 308-323.
  • Hoti, E. (2009). Remittances and Poverty in Albania; Department of Economics at the University of Lund, 2009:6; Minor Field Study Series No. 192
  • IFAD (2012). The Sustainable Livelihoods Approach. Available at http://www.ifad.org/sla/framework/index.htm
  • International Monetary Fund (2009). Do Workers’ Remittances Promote Economic Growth? International Monetary Fund Working Paper, WP/09/153, Washington, DC. IOM (ud) INFO SHEET, Available online: http://www.iom.int/jahia/webdav/site/myjahiasite/shared/shared/mainsite/published_docs/broc hures_and_info_sheets/IOM_Remittance_eng_pdf.pdf; [Accessed on 19 September 2014]
  • Kerzner, S. (2009). Cash and Carry: Understanding the Johannesburg- Zimbabwe Remittance Corridor. Report for Fin Mark Trust. Midrand
  • Kiiru, J. (2010). Remittances and Poverty in Kenya. OIDA International Journal of Sustainable Development , 1(8), 33-41, 2010
  • Kimhi, A. (1994).Quasi Maximum Likelihood Estimation of Multivariate Probit Models: Farm Couples' Labour Participation. American Journal of Agricultural Economics , 76(4), 828-835.
  • Koc, I. & Onan, I. (2004). International migrants’ remittances and welfare status of left behind families in Turkey. International Migration Review , 38(1), 78-112.
  • Lindley, A. (2006). Migrant Remittances in the Context of Crisis in Somali Society. Humanitarian Policy Group, Overseas Development Institute, London.
  • Lindley, A. (2007). Protracted Displacement and Remittances: the View from Eastleigh, Nairobi. Research Paper No. 143. New Issues in Refugee Research. UNHCR.
  • Loschmann, C. (2009). The Global Crisis, Remittance Transfers, and Livelihoods of the Poor, World Academy of Science. Engineering and Technology , 54, 833-838.
  • Maimbo, S. M. (2006). Remittances and Economic Development in Somalia: An Overview, Social Development Paper No. 38, World Bank: Conflict Prevention and Reconstruction Unit.
  • Maphosa, F. (2005). The Impact of Remittances from Zimbabweans Working in South Africa on Rural Livelihoods in the Southern districts of Zimbabwe; Forced Migration Working Paper Series #14 Forced Migration Studies Programme University of the Witwatersrand; http://migration.wits.ac.za
  • Massey, D. S., Arango, J., Hugo, G., Kouaouci, A., Pellegrino, A. & Taylor, J. E. (1993). Theories of international migration—a review and appraisal. Population and Development Review , 19, 431–466
  • McDowell, C. & de Haan, A. (1997).Migration and Sustainable Livelihoods: A Critical Review of the Literature. IDS Working Paper No. 65. Brighton: IDS.
  • Mishi, S. & Kapingura, F. M. (2013). Macroeconomic significance of remittances in developing countries. Int. J. Economic Policy in Emerging Economies, 6(3).
  • Ncube, S. & Houggard, C. (2010).So near, yet so far? Assessing the 90-day permit for Zimbabwean migrants as a remittances financial inclusion tool; Centre for Financial Regulation and Inclusion; University of Stellenbosch Business School Bellville Park
  • Nilsen, J. (2014). Remittances and Development: The Impact of Remittances on Livelihood Security. Evidence from Ko Kaeo Sub-district, Thailand; unpublished Master’s Thesis, (2014), University of Adger, Faculty of Economics and Social Sciences
  • Nyberg-Sorensen, N., Van Hear, N. & Engberg-Pedersen, P. (2002). The migration-development nexus: evidence and policy options. International Migration , 40(5), 4974.
  • Odozia, J. C., Awoyemia, T. & Omonona, B. T. (2010). Household Poverty and Inequality: The Implication of Migrants’ Remittances in Nigeria. Journal of Economic Policy Reform , 13(2), 191–99.
  • Oucho, J. O. (1990). Migrant Linkages in Africa: Retrospect and Prospect; in the Union for African Population Studies (UAPS), Commissioned Papers, and Conference on the Role of Migration in African Development: Issues and Policies for the 90s. Dakar: UAPS, pp. 109-141.
  • PASSOP. (2012). People against Suffering Oppression and Poverty, 2011 Report Available on: www.passop.co.za
  • Plaza, S., Navarrete, M. & Ratha, D. (2011). Migration and Remittances Household Surveys in Sub-Saharan Africa—Methodological Aspects and Main Findings. World Bank, Washington, DC.
  • Quartey, P. & Blankson, T. (2004). Do Migrant Remittances Minimize the Impact of Macro-volatility on the Poor in Ghana; Report prepared for the Global Development Network, University of Ghana, Legon.
  • Quinn, E. (2006). Policy Analysis Report on Asylum and Migration: Ireland Mid-2004 to 2005. Dublin: Economic and Social Research Institute.
  • Ratha, D. & Silwal, A. (2012).Remittance flows in 2011 — an update. Migration and Development Brief 18,23April. http://siteresources.worldbank.org/INTPROSPECTS/Resources/3349341110315015165 /MigrationandDevelopmentBrief18.pdf.
  • Ratha, D., Mohapatra, S., Özden, C., Plaza S., Shaw, W. & Shimeles, A. (2011).Leveraging migration for Africa: remittances, skills, and investments; Washington, DC: World Bank, 2011.
  • RBZ. (2005). Reserve Bank of Zimbabwe Annual Report 2005
  • Samal, C. K. (2006). Remittance and sustainable livelihood in semi-Arid Areas. Asia - Pacific Development Journal , 13(2).
  • Shroff, K. (2009).Impact of Remittances on Poverty in Mexico; Working Paper Yale College '09, Prepared for the Global Citizenship Conference, May 2009
  • Sorensen, N. (2004). Migrant Remittances as a Development Tool: The Case of Morocco; IOM Working Paper 2, International Organization for Migration, Geneva. http://www.belgium.iom.int/paneuropeandialogue/documents/remittances_morocco.pdf.
  • Stark, O. & Bloom, D. (1985).The New Economics of Labour Migration. American Economic Review , 75(2), 17378.
  • Tansel, A. & Pinar Y. (2010). Macroeconomic impact of remittances on output growth: Evidence from Turkey. Migration Letters, Transnational Press London , UK , 7(2), 132-143.
  • Taylor, J. E., Rozelle, S. & de Brauw, A. (2003). Migration and incomes in source communities: a new economics of migration perspective from China. Economic Development and Cultural Change , 52(1), 75–101.
  • Taylor, J. E. (1999). The new economics of labour migration and the role of remittances in the migration process. International Migration, 37, 63–88
  • Todaro, M. P. (1969). A Model of Labour Migration and Urban Unemployment in Less Developed Countries. American Economic Review , 59(1), 138-48.
  • UN. (2006). Meeting of the United Nations Technical Subgroup on Movement of Persons – Mode 4 http://unstats.un.org/unsd/tradeserv/tsg3-feb06/tsg0602-14.pdf
  • Van Hear, N. (2004). Diasporas, remittances, development, and conflict.” Migration Information Source, Migration Policy Institute, Washington, DC. June. www.migrationinformation.org, accessed in October 2013.
  • Weiss-Fagan, P. (2006). Remittances in Crisis: A Haiti Case Study; Overseas Development Institute, London. http://www.odi.org.uk/hpg/papers/BG_Haiti_remittances.pdf.
  • World Bank. (2005). Global Development Finance 2005, Mobilizing Finance and managing Vulnerability. World Bank, Washington DC.
  • World Bank. (2007). Migration and Remittances: Eastern Europe and the Former Soviet Union, (Washington: World Bank).
  • Wouterse, F. (2010). Remittances, Poverty, Inequality and Welfare: Evidence from the Central Plateau of Burkina Faso. Journal of Development Studies , 46(4), 771–89.
  • Yang, D. & Martinez, C. A. (2005). Remittances and Poverty in Migrants’ Home Areas: Evidence from the Philippines. In C. Ozden and M. Schiff (Eds.), International Migration, Remittances, and the Brain Drain. Washington, DC: World Bank.
  • Young, K. (2006). Globalisation and the changing management of migrating service workers in the AsiaPacific, in K. Hewison and K. Young (eds.) Transnational Migration and Work in Asia. New York: Routledge, 15-36.
  • Zhu, N. & Luo, X. B. (2010). The impact of migration rural poverty and inequality: a case study in China. Agricultural Economics , 41(2), 191-204.
  • Zimstats (2012). Population Growth rates; Available online www.zimstats.co.zw; Accessed July 2012.

Downloads

No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.

How to Cite

Mishi, S., & Mudziwapasi, L. (2014). Remittances and Sustainability of Family Livelihoods: Evidence from Zimbabwe. Journal of Economics and Behavioral Studies, 6(12), 958-973. https://doi.org/10.22610/jebs.v6i12.553

Share this article

License

Copyright (c) 2014 Syden Mishi, Lilymore Mudziwapasi (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team  edits and formats manuscripts to bring uniformity and standardization in published material.

This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.

Keywords

Section

Research Paper

Published in

Vol. 6 No. 12 (2014) E-Commerce, Monetary Policy & Inclusive Development View issue contents

Published

2014-12-30

Submissions

Have research to publish? Journal of Economics and Behavioral Studies welcomes submissions.

Make a Submission