Kyrgyzstan has experienced large labor out-migration over the last two decades. According to the State Agency on Migration in Kyrgyzstan, 650 to 750 thousand Kyrgyz citizens of the total population of 5.7 million were working abroad in 2015. The amount of remittances received from international migrants is also large: in 2013, the share of workers’ remittances to GDP was 31.4%.
This paper analyses the impacts of international migration and remittances on different sources of income in rural Kyrgyzstan. The results were published in the European Journal of Development Research (EJDR).
Based on a household dataset from the Life in Kyrgyzstan panel survey of 1012 rural households, we estimated equations for crop income, livestock income, and non-agricultural income jointly in a system using the seemingly unrelated regressions (SUR) and general method of moments (GMM) three-stage least-squares (3SLS) estimators.
Our results show that international migration had diverse effects on different sources of rural income in Kyrgyzstan. The effect of international migration in total was negative on crop income, but positive on livestock income and mixed for non-agricultural income.