Impacts of Migration and Remittances on Agricultural Production and Income in Cambodia

Authors: Phanwin Yokying*, East-West Center, Jefferson Fox, East-West Center
Topics: Migration, Quantitative Methods, Asia
Keywords: Migration, remittance, agriculture, Cambodia
Session Type: Virtual Paper
Day: 4/8/2021
Start / End Time: 3:05 PM / 4:20 PM
Room: Virtual 36
Presentation File: No File Uploaded

Migration out of agriculture is a fundamental feature of economic development in developing countries. Cambodia has seen a significant growth of domestic and international migration over the past two decades, making the country among the top remittance-receiving countries in ASEAN. While the effect of migration on poverty reduction has been well studied, its effect on agricultural development has received little empirical attention. To narrow this gap in the literature, this paper examines the effects of domestic and international migration and remittances on yields, sales, and income of rice and vegetable crops. Unlike other studies, this paper allows for the impact of remittance earnings to differ by women’s ability to participate in agricultural decisions. Based on a three-stage least squares model, our results show that a loss of family members due to domestic migration has a negative impact on yields and income generated from vegetable crop cultivation. International migration and remittance income both have a negative impact on rice production, sales, and earnings. However, we find that remittance has a positive impact on rice production, sales, and income in households in which women are able to influence agricultural production decisions. Our results highlight the importance of women’s role in farm decision-making and underscores the need to improve agricultural productivity in migrant-sending communities in Cambodia.

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