The impact of remittances on household spending has been a debatable issue. A I arge body of literature has been concerned about remittances in Egypt as well as other developing countries. However, there are conflicting views regarding the way remittances are circulated. Some believe that remittances negatively the economy of the recipient country by increasing personal consumption. On the other hand, others supported that remittances enhance productive asset accumulations and increased savings and investments. This thesis uses 1997 Egypt Integrated Household Survey (EIHS) to empirically assess whether remittances change household spending. For understanding of the way remittances affect spending decision, this thesis identifies the characteristics of migrant and remittances recipient households. Opposite to the orthodox belief, migrants are most likely among the least educated and the poorest segments of society. This is due to limited opportunities at home and the demand for low skills construction laborers and farmers abroad. This research concludes that remittances do not change personal consumption such as food, clothes and ceremonies because recipients regard remittances as a temporary stream of income that should be allocated for assets accumulation with longer-term nature. Given the limited alternatives recipients prefer to spend on improving quality of dwellings and durable goods, both of which are a store of value, and raise living standards.


Economics Department

Degree Name

MA in Economics

Date of Award


Online Submission Date


First Advisor

Andrew Melnyk

Committee Member 1

Andrew Melnyk

Committee Member 2

Dennis Powers

Committee Member 3

Naglaa Rizk

Document Type



51 leaves

Library of Congress Subject Heading 1

Migrant remittances

Library of Congress Subject Heading 2

Emigrant remittances


The author retains all rights with regard to copyright. The author certifies that written permission from the owner(s) of third-party copyrighted matter included in the thesis, dissertation, paper, or record of study has been obtained. The author further certifies that IRB approval has been obtained for this thesis, or that IRB approval is not necessary for this thesis. Insofar as this thesis, dissertation, paper, or record of study is an educational record as defined in the Family Educational Rights and Privacy Act (FERPA) (20 USC 1232g), the author has granted consent to disclosure of it to anyone who requests a copy.

Call Number

Thesis 2002/17



Included in

Business Commons