The Impact of Remittances on Household Poverty Reduction in Tajikistan

Abstract

The impact of domestic as well as international remittances, particularly, in developing countries, where the integration of the world economy stimulates the supply of labor force to other countries and migration, is increasingly playing a vital role in the alleviation of poverty around the world. The primary goals of this research work are to examine the contribution of Tajik labor migrants’ remittance to their households and to analyze the impact of remittances on the reduction of poverty in the Republic of Tajikistan. Furthermore, the analysis is based on the secondary survey data conducted in 2009. The primary applied methods are binary choice Logit and linear probability models which test the likelihood of being poor in a given household. The obtained results show that the role of remittances is significant for the reduction of household poverty.