Tunisians' Dependence on International Remittances during the COVID-19 Pandemic

Abstract

In this study, we assess the degree of Tunisian households' dependence on migratory remittances during the first wave of the COVID-19 crisis and how much this dependence intersects with economic vulnerability in Tunisia. For this objective, we identify three variables needed for our analysis that reflect remittance dependency, economic vulnerability, and infrastructure inadequacy. Using data from wave eight of the Afrobarometer Household Survey, conducted in 2020, we estimated a multinomial logistic model. The findings show that a significant probability of the most economically vulnerable Tunisians is considered highly dependent on international remittances. Also, we are finding a likelihood of increased receipt of funds through official channels during the lockdown. However, Tunisians dependent on remittances face more economic shortages which are further exacerbated when they intersect with the infrastructure deficit and fewer digital resources. These households will therefore be less able to adapt to a restriction on in-person remittance services during a lockdown to contain the COVID-19 virus. As a result, the paradigm shift from cash to digital money is necessary.