CEU eTD Collection (2020); Ton, Nu Thuy Duong: Remittances and Urban Bias

CEU Electronic Theses and Dissertations, 2020
Author Ton, Nu Thuy Duong
Title Remittances and Urban Bias
Summary Remittances' impact on policymaking has been understudied in both political science and economics. This paper attempts to further the understanding of the role of the financial inflow on development by exploring its impact on urban-bias in policymaking. The formal modeling proves that remittances would propel the government to decrease welfare provision and increase the expenditure on patronage goods to build a strong voting coalition with its interest groups, i.e., the urban industrialists. These changes would result in urban-biased economic strategy and public policies, which, consequently, would widen the gap in development between urban and rural areas. Evidence from panel data analysis supports the claim that the rise in remittances would reduce the stimulus through trading policy to agricultural sectors and drives the rate of agricultural assistance negative.
Supervisor Li X.Andrew; Simonovits Gabor
Department Political Science MA
Full texthttps://www.etd.ceu.edu/2020/ton_nu-thuy-duong.pdf

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