AUTHOR=Yin Ying , Qamruzzaman Md. , Xiao He , Mehta Ahmed Muneeb , Naqvi Farah Naz , Baig Imran Ali 

TITLE=Nexus between uncertainty, remittances, and households consumption: Evidence from dynamic SUR application

JOURNAL=Frontiers in Environmental Science

VOLUME=Volume 10 - 2022

YEAR=2022

URL=https://www.frontiersin.org/journals/environmental-science/articles/10.3389/fenvs.2022.950067

DOI=10.3389/fenvs.2022.950067

ISSN=2296-665X

ABSTRACT=Household consumption induces aggregated economic activities by pushing market demand, capital accumulation and financial growth in the economy. The motivation of the study is to gauge the role of pandemic uncertainties and remittance inflow on household consumption in lower, Lower-middle, and upper-middle-income countries for the period 1996 - 2020. The study employed several econometrical tools, including a panel cointegration test with error correction term, dynamic SUR. Panel unit root test following CADF and CIPS documented variables are stationary after the first difference and long-run association confirmed with panel cointegration test. The coefficient of DSUR exposed pandemic uncertainties and has a negative impact on household consumption in all three-panel estimations; however, the coefficient of PUI is more prominent with COVID-19 effects. Remittances' role on household consumption revealed positive and statistically significant, suggesting migrant’s remittances encourages additional consumption among households. On the policy aspect, the study proposed that the government should undertake macro policies to manage policy uncertainties so that the normal course of consumption level should not be interrupted, because household consumption volatility creates discomfort in aggregated development. Moreover, efficient reallocation and channelizing of remittances should be ensured in the economy; therefore, efficient institutional development has to be confirmed.