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Bharati Basu and Aranya Biswas
 
''Do remittances affect healthcare expenditure?: evidence from Kenya''
( 2024, Vol. 44 No.3 )
 
 
Using the World Bank's data for migration and remittances in Kenya, this paper examines the impact of remittances on household healthcare expenditures. A Tobit analysis together with an instrumental variable approach reveals a significant positive effect of remittances on healthcare expenditures. The effect is bigger for internal and within-Africa migration compared to out-of-Africa migration. Households with a higher volume of remittances are more sensitive to this positive income effect compared to those with a smaller amount of remittance income. These insights may help Kenya and other lower-middle-income countries in incentivizing remittances and restructuring the healthcare system to achieve their goal of Universal Health Care.
 
 
Keywords: Remittances, Health Care Expenditure, Kenya
JEL: O1 - Economic Development: General
I1 - Health: General
 
Manuscript Received : Apr 14 2024 Manuscript Accepted : Sep 30 2024

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