The Impact of Remittances on Rural Poverty Reduction and on Rural Households’ Living Expenditure

This paper uses survey data from Jiangsu and Anhui provinces to examine the impact of remittances on rural poverty reduction and on rural households’ living expenditure. The paper shows that remittances play an important role in rural poverty reduction. The paper also finds that rural households mainly use remittances for current consumption living expenditure rather than for investment living expenditure such as health and housing.