Open AccessDo Social Grants Displace Remittances? Evidence From South Africa
Author(s) -
Mduduzi Biyase,
Talent Zwane,
September Rooderick
Publication year - 2017
Publication title -
the international business and economic research journal/the international business and economics research journal
Language(s) - English
Resource type - Journals
eISSN - 2157-9393
pISSN - 1535-0754
DOI - 10.19030/iber.v16i4.10042
Subject(s) - sample (material) , economics , demographic economics , chromatography , chemistry
This paper employs a newly-available and representative National Income Dynamics Study (NIDS) data of South African households to investigate whether social grants crowd-out or displace remittances. The estimated results based on full sample reveal that while the social grants have a negative impact on the amount of remittances received, the effect is statistically insignificant – social grants do not crowd out or displace remittances. The coefficient on the social grant is also insignificant in both sub-samples (rural and urban), consistent with the results on the full sample