BACKGROUND

Remittances constitute one of the most important external income sources for Georgian households, accounting for more than 10 percent of GDP in recent years. Large-scale emigration to countries such as Russia, Italy, Greece, Germany, and the United States has made remittance inflows a central component of household livelihoods, particularly for vulnerable and lower-income groups. Beyond their macroeconomic role, remittances are widely believed to influence household welfare and consumption behaviuor by supplementing income and easing liquidity constraints.

Despite their growing importance, empirical evidence on how remittances are associated with household-level outcomes in Georgia remains limited. In particular, it is not well understood whether remittances primarily support basic consumption and vulnerability reduction, or whether they are also reflected in higher expenditures on health, education, housing, and other welfare-enhancing categories. Moreover, the extent to which remittance-receiving households differ systematically from non-receiving households in terms of demographic composition and socio-economic characteristics has not been comprehensively documented.

This study provides a micro-level analysis of the relationship between remittance receipt and household welfare in Georgia, focusing on household consumption levels and expenditure composition. Using nationally representative household survey data, the analysis examines whether remittance-receiving households exhibit higher consumption and distinct spending patterns relative to non-receiving households, and whether these associations persist after accounting for household characteristics and regional differences. The analysis is guided by the following research questions:

• Do households receiving remittances exhibit higher levels of consumption than non-receiving households?
• How does remittance receipt relate to the composition of household expenditures, particularly spending on food, health, education, and other key categories?
• Are the observed differences in consumption associated with remittances robust to controlling for household demographic characteristics and regional variation?

For the complete note, please refer to the attached report (above).