Does Remittance Offset the Effect of Loss of Labour Through Migration on Agricultural Productivity in Tanzania?

International Journal of Food and Agricultural Economics (IJFAEC), 2022, vol. 10, issue 4

Abstract: This paper assessed the effects of migration and remittances on the agricultural productivity of households in Tanzania. Using the most recent nationally representative crosssectional household survey dataset, the three-stage least squares (3SLS) estimate the model to correct for the endogeneity of the remittance variable. The results showed that remittances did not positively impact agricultural productivity in Tanzania. This finding implies that the shortage of agricultural labour due to migration is further worsened by using remittances for household consumption instead of investing in productive agricultural assets. Using the NELM theory as an analytical framework, the findings do not support the argument that remittances could relax credit constraints faced by agricultural households as stipulated by the NELM theory.

Keywords: Agricultural and Food Policy; Community/Rural/Urban Development; Consumer/Household Economics; Labor and Human Capital; Production Economics; Productivity Analysis (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ijfaec:329627

DOI: 10.22004/ag.econ.329627

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