The Determinants of Remittances: Evidence from Moldova

This article explores the factors that account for the receipt of remittances by households in Moldova that have members who have migrated abroad, mostly temporarily. We approach our research question from the perspective of the recipient household and use it to interpret the econometric findings on the determinants of remittances. Our results show that a combination of household and migrant characteristics and some community-level variables are the key elements in explaining remittance behaviour. Drawing on these estimates, we argue that the results point towards altruism and investment as the two possible motives behind remittance flows to Moldova, which significantly affect the country's development prospects.     

A CGE analysis of the impact of trade liberalization between the U.S. and Mexico

This study examines the effects of free trade between the U.S. and Mexico on the sectoral trade balance of the U.S. The empirical findings indicate that free trade would benefit the overall trade balance of the U.S., but the benefit will be small in the near to medium term for two reasons. First, there is a huge disparity between the economic sizes of the two countries. Second, a sizable share of Mexican exports already enter the U.S. under the Generalized System of Preferences (GSP) or at low rates under maquiladora production-sharing arrangements. The relatively low tariff rates already in effect allow most of the benefits of trade between the U.S. and Mexico to be realized and therefore limit the potential benefits to the U.S. from free trade.     

Nutrition Transition and Changing Food Preferences in India

We present empirical evidence on how changes in food preferences have contributed to nutrition transition, where the dietary pattern of households shifts away from traditional staples. Using household-level time series cross-section survey data for India, we estimate time varying demand elasticities, revealing evidence of the declining importance of cereals in Indian household diets. The estimates show that Indian demand for cereals has become more income inelastic and price elastic. We also find that cereals are a substitute rather than a complement to animal products in household diets. Since changes in elasticities can only be attributed to variation in utility parameters, this indicates that cereals are losing favour with Indian households. These findings have implications for Indian food policy design and implementation.