Abstract
This paper employs a newly-available and representative National Income Dynamics Study (NIDS) data of South
African households to investigate whether social grants crowd-out or displace remittances. The estimated results
based on full sample reveal that while the social grants have a negative impact on the amount of remittances received,
the effect is statistically insignificant – social grants do not crowd out or displace remittances. The coefficient on the
social grant is also insignificant in both sub-samples (rural and urban), consistent with the results on the full sample