Remittance patterns differ across rural and urban households

Although emigration and remittances are closely linked, one does not necessarily imply the other. Four in ten households in the sample received international remittances, partly reflecting the oversampling of migrant households (Figure 3.7). Most - but not all - of these households received them from a former household member who has emigrated, though 11% of them received them from someone else. Among households with an emigrant, 90% received remittances, compared to 7% of households without an emigrant member.

Information was collected on the financial decisions of households receiving remittances from a former household member. The most common action taken by both rural and urban households was to repay a loan (Figure 3.8). This was more likely for rural households (42%) than urban households (35%). Urban households were more likely than households in rural areas to pay for health treatment or schooling and accumulate savings.

The survey also collected information on the frequency and amount of remittances received from former household members. The average amount sent home by emigrants is KHR 3 597 000 (Cambodian Riel; equivalent to USD 889) over the last year, taking into account both cash and in-kind remittances. The average amount remitted is slightly higher for male (USD 919) than for female emigrants (USD 843). Both sexes remit equally, at 83%. About 8% of remittance-sending


emigrants had sent in-kind remittances in the past 12 months. Around 40% of the remittances were sent through informal channels (informal agent, friends or family) to households in both rural and urban areas. (Figure 3.9). on average, remittance senders have send money home every other month.

figure 3.7. Nearly 40% of all households in the sample receive remittances

share of households that receive remittances (%)

Note: the category “households receiving remittances from former member” does not imply that they solely receive remittances from a former member. it includes households that receive additional remittances from other emigrants.

Source: Authors’ own work based on IPPMD data.


Figure 3.8. Debt repayment is the most common action for households receiving remittances

Actions taken by households that receive remittances from a former household member

Note: The sample includes only households that receive remittances from a former household member. The figure displays the top seven most common activities reported by households. Households could specify whether they had undertaken each activity from the following list: taking a loan from a bank, paying for health treatment or schooling of a household member, accumulating savings, repaying a debt/loan, building or buying a home, investing in agricultural activities, taking out a loan from informal sources, accumulating debt, setting up a business, building a dwelling to sell to others and buying land.

Source: Authors’ own work based on IPPMD data.


Figure 3.9. About one-quarter of rural households receive remittances through an informal agent

channels used by emigrants to send remittances

Source: Authors’ own work based on IPPMD data.


< Prev   CONTENTS   Source   Next >