The Impact of remittances on household food security: Evidence from a survey in Bangladesh

Abstract

ABSTRACT This paper examines the impact of international remittances on household food security, using robust food security measurement indices constructed from a cross-section sample of rural households in Bangladesh. A Two Stage Least Square Instrumental Variable Method (2SLS-IV) and Generalised Method of Moments (GMM) were used to regress food security measurement indicators with remittances and households socioeconomic and demographic variables. Results indicate that remittances influence food security conditions significantly and therefore represent a critical component of household food security. In general, remittances are positively correlated with household food-related consumption expenditures. The results also indicate that the presence of remittances reduces food-related uncertainties and provides a coping strategy for the household to counterbalance food-related shocks and improves the quality of diet in remittance-receiving households. Overall, it seems that emigration of a household member and consequent remittance flows increase the probability of a household being food secure.