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. 2021;5(1):97-110.
doi: 10.1007/s41885-020-00078-9. Epub 2020 Sep 25.

Projection of the Effects of the COVID-19 Pandemic on the Welfare of Remittance-Dependent Households in the Philippines

Enerelt Murakami  1 , Satoshi Shimizutani  1 , Eiji Yamada  1
Affiliations

Projection of the Effects of the COVID-19 Pandemic on the Welfare of Remittance-Dependent Households in the Philippines

Enerelt Murakami et al. Econ Disaster Clim Chang. 2021.

Abstract

The Coronavirus Disease 2019 (COVID-19) is inevitably affecting remittance-dependent countries through economic downturns in the destination countries, and restrictions on travel and sending remittances to their home country. We explore the potential impacts of the COVID-19 pandemic on the welfare of remittance-dependent households using a dataset collected in the Philippines prior to the outbreak. First, we confirm that remittances are associated with welfare of households, particularly for those whose head is male or lower educated. Then, we use the revision of the 2020 GDP projections before and after the COVID-19 crisis to gauge potential impacts on households caused by the pandemic. We find that remittance inflow will decrease by 14-20% and household spending per capita will decline by 1-2% (food expenditure per capita by 2-3%) in one year as a result of the pandemic.

Keywords: COVID-19; Household welfare; Migration; Philippines; Remittance.

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Fig. 1
Fig. 1
Location maps of two municipalities. Source: Generated by the authors based on GDAL’s administrative boundary shapefiles
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