Journal of Economic, Finance Research and Review (JEFRR) · Research article · Open access
Remittances, Household Consumption, And Financial Resilience During Economic Shocks
Shahan Shah, Md. Mahbub Ur Rahman, Muhammad Shoaib, Saud Ahmed
8 September 2026 · Vol. 2, Issue 9, pp. 633-635
DOI: 10.65150/EP-jefrr/V2E9/2026-05
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What is this article about?
This paper examines how international remittance flows influence household consumption smoothing and financial resilience during periods of macroeconomic stress, using household survey data from remittance-dependent economies across two recent shock periods: the COVID-19 pandemic (2020–2021) and the subsequent global inflationary episode (2021–2023). Comparing consumption volatility between remittance-receiving and non-receiving households, the analysis employs a differencein-differences framework alongside household fixed-effects regression to identify the causal effect of remittances on consumption stability and savings recovery.
Article at a glance
- Published
- 8 September 2026
- Volume / issue / pages
- Vol. 2, Issue 9, pp. 633-635
- ISSN
- 3051-3650 (online) · 3051-3642 (print)
- Licence
- CC BY 4.0 — free to read and reuse with attribution
- Peer review
- Double-blind, at least two independent reviewers
- Publisher
- EP Journals Group
Abstract
This paper examines how international remittance flows influence household consumption smoothing and financial resilience during periods of macroeconomic stress, using household survey data from remittance-dependent economies across two recent shock periods: the COVID-19 pandemic (2020–2021) and the subsequent global inflationary episode (2021–2023). Comparing consumption volatility between remittance-receiving and non-receiving households, the analysis employs a differencein-differences framework alongside household fixed-effects regression to identify the causal effect of remittances on consumption stability and savings recovery. Results indicate that remittance-receiving households exhibit significantly lower consumption volatility and faster recovery in savings rates, suggesting remittances act as an informal insurance mechanism. The paper discusses policy implications for leveraging remittance channels as a complement to formal social safety nets in shock-prone economies.
Keywords: remittances, household consumption, financial resilience, economic shocks, consumption smoothing, informal insurance, difference-in-differences
Cite this article
Shahan Shah, Md. Mahbub Ur Rahman, Muhammad Shoaib, & Saud Ahmed (2026). Remittances, Household Consumption, And Financial Resilience During Economic Shocks. Journal of Economic, Finance Research and Review, 2(9), 633-635. https://doi.org/10.65150/EP-jefrr/V2E9/2026-05
@article{Shahan2026,
title = {Remittances, Household Consumption, And Financial Resilience During Economic Shocks},
author = {Shahan Shah and Md. Mahbub Ur Rahman and Muhammad Shoaib and Saud Ahmed},
journal = {Journal of Economic, Finance Research and Review},
year = {2026},
volume = {2},
number = {9},
pages = {633-635},
doi = {10.65150/EP-jefrr/V2E9/2026-05},
url = {https://doi.org/10.65150/EP-jefrr/V2E9/2026-05}
}Questions about this article
Who wrote this article?
Shahan Shah, Md. Mahbub Ur Rahman, Muhammad Shoaib, Saud Ahmed.
Where and when was it published?
In Journal of Economic, Finance Research and Review, Volume 2, Issue 9, pages 633-635, published by EP Journals Group on 8 September 2026.
Is this article free to read?
Yes. It is open access under a Creative Commons Attribution 4.0 (CC BY 4.0) licence, so anyone can read, share and reuse it with attribution.
What is the DOI of this article?
10.65150/EP-jefrr/V2E9/2026-05 (https://doi.org/10.65150/EP-jefrr/V2E9/2026-05).
How do I cite this article?
APA: Shahan Shah, Md. Mahbub Ur Rahman, Muhammad Shoaib, & Saud Ahmed (2026). Remittances, Household Consumption, And Financial Resilience During Economic Shocks. Journal of Economic, Finance Research and Review, 2(9), 633-635. https://doi.org/10.65150/EP-jefrr/V2E9/2026-05
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