The Effect of Diaspora Remittances on Health Outcomes in Kenya
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Date
2021
Authors
Kibet, Weldon
Rono, Gladys
Journal Title
Journal ISSN
Volume Title
Publisher
International Organization Of Scientific Research (IOSR)
Abstract
Background: A healthy population positively impacts on a country’s economic growth. However, two measures
of health outcomes in Kenya -life expectancy at birth and under-five mortality rate, on average are 58.2 years
and 85.9 deaths per 1000 births against government targets of 72 years and 24 deaths per 1000 births
respectively. The consequences of the above scenario have hampered country’s productivity, national income
and poverty reduction initiatives. The general objective of the study was therefore to determine the effect of
diaspora remittances on health outcome. Specifically, this study examined the effect of diaspora remittance on
life expectancy at birth, and the effect of diaspora remittance on under-five mortality rate.
Methods: Time series data for the period 1985 to 2018 were used in this study. Multivariate regression was
specified and the Ordinary Least Square (OLS) estimation technique was used in estimating the direction and
coefficients of diaspora remittance and control variables on measures of health outcomes (under-five mortality
rate and life expectancy at birth). The research was informed by Grossman theoretical model with various
inputs into health production function
Results: The study found that the coefficients of diaspora remittance, official development assistance were
positive and statistically significant. While immunization uptake level negatively affected life expectancy at
birth. The under-five mortality rate was negatively affected by diaspora remittances, private consumption and
official development assistance, while immunization uptake level positively affected it. From the findings of the
study, the government in collaboration with financial institutions should guarantee cheap, efficient, and safe
remittance of employee compensation from abroad for the country to realize better health outcomes.
Description
A research article published in IOSR Journal of Economics and Finance (IOSR-JEF)
Keywords
Remittances, Life Expectancy at birth, Under-five Mortality, Kenya
Citation
Kibet, W., & Rono, G. The Effect of Diaspora Remittances on Health Outcomes in Kenya.