Do International Remittances Matter to Tobacco Spending? Evidence from Vietnam

Although there are numerous studies on international remittances and on smoking, there are no studies on the link between these two issues. This study provides empirical evidence for the impact of international remittances on household tobacco spending in Vietnam using panel data from Vietnam Household Living Standard Surveys. It is found that receipt of international remittances reduces the probability of household spending on tobacco by around 0.098. Remittance receipt also reduces per capita tobacco expenditure for households with tobacco spending and for all households by approximately 21 per cent and 52 per cent, respectively.