Nexus between foreign remittances and poverty alleviation: Empirical investigation of Tajikistan from Central Asia

Figures & data

Figure 1. Remittances and poverty in Tajikistan.

Source: World Development Indicators, 2021.

Table 1. Description of variables

Variable	Abbreviation	Description
Remittances	RMT	Contributions by foreign workers into the home country economy through noncommercial transfer of money.
Poverty	PV	Lack of financial and resources which results in poor social, economic conditions of individual.
Capital Formation	CF	The total accumulation over the specified accounting period of any country. It includes the contribution from capital goods such as transportation, assets, equipment’s, tools etc.
LNGDP	GDP	The overall monetary benefits gained by any country during a period of one year. These are based on goods and services.
Inflation	INF	Rise in prices
Unemployment	Unemp	Those who are part of labor force and are actively seeking for the job but still unable to secure the job.

Table 2. Summary statistics

Variables	Mean	Median	Std. Dev.	skewness	kurtosis	p25	p75
Poverty	14.060	12.600	5.9660	1.5630	2.0140	9.2000	18.600
Remittances	34.517	33.533	6.4390	2.2620	1.4650	28.756	41.738
Capital Formation	26.864	26.851	2.7700	0.1170	1.7710	24.376	29.038
LNGDP	6.8240	6.8240	0.1330	1.0320	1.8580	6.7180	6.9320
Inflation	6.7920	6.0050	2.5260	1.9080	4.8950	5.7150	6.4450
Unemployment	8.2160	7.8500	1.5500	1.4880	1.7820	6.8100	9.5000

Note: Descriptive statistics of the independent and dependent variables are based on the mean, median, standard deviation, skewness, kurtosis, and median values at the 25^th and 75^th percentiles.

Table 3. Pairwise correlation

Variables	(1)	(2)	(3)	(4)	(5)	(6)
(1) Poverty	1.000
(2) Remittances	0.727*	1.000
(3) Capital Formation	−0.591	−0.676*	1.000
(4) LNGDP	−0.557	−0.641*	0.489*	1.000
(5) Inflation	0.436	0.295	0.296	0.284	1.000
(6) Unemployment	0.770*	0.581*	−0.629	−0.602	0.431	1.000

*p < 0.05.

Table 4. Variance inflation factor

	VIF	1/VIF
Remittances	2.984	0.335
Poverty	5.671	0.176
Capital Formation	2.112	0.473
LNGDP	1.446	0.691
Inflation	2.531	0.395
Unemployment	1.619	0.617
Mean VIF	2.721	.

Table 5. Ordinary Least Square regression (OLS) dependent variable: poverty

Variables	(1)	(2)	(3)	(4)	(5)	(6)
Remittances	−0.674***					−0.130*
	(0.163)					(0.053)
Capital Formation		−1.368**				1.298
		(0.575)				(0.595)
GDP			−34.492*			−37.304
			(15.367)			(20.186)
Inflation				1.229***		0.143
				(0.257)		(0.242)
Unemployment					3.834***	3.303***
					(0.134)	(0.428)
Constant	−9.200	51.360***	127.822**	5.991*	−17.435***	76.656
	(5.245)	(15.257)	(50.336)	(3.088)	(1.189)	(54.176)
R-squared	0.528	0.349	0.311	0.190	0.990	0.996
Firm & Year Effect	Yes	Yes	Yes	Yes	Yes	Yes

Robust standard errors are indicated in parentheses. ***p<0.01, **p<0.05, *p<0.1.