Theory of Remittance Determination Research Papers (original) (raw)

The aim of the paper is to highlight the variables that determine the propensity to receive remittances and the amount of remittances by households in rural Bangladesh. The empirical model incorporated the determinants of remittances in terms of observed migrant and household characteristics that are assumed to capture the underlying motives of remitting suggested by existing theories of remittances. This paper explores the motives that account for the receipt of remittances across rural households in Bangladesh who have migrants in Italy. Unlike most of the existing literature, the research question from the perspective of the recipient household and use it to interpret the determinants/motivations of remittances. The results show that a combination of household and migrant characteristics and some community level variables are the key elements in explaining the remittance behaviour in Bangladesh. Drawing from these estimates, this study conclude that altruism investment and kinship are the three main motives behind remittance flows to Bangladesh and both community variables (NELM and presence of networks in the host country) are strong determinants of the likelihood of receiving remittances by households.

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- Motivation (Psychology), Migration, Irregular Migration, Labor Migration

This study examines and analyses migrant's remittances model based on secondary sources as well as primary survey conducts on 300 Bangladeshi remittances senders in Malaysia. The survey revealed that formal banks and money transfer operators are still prominent channels/access points for sending remittances. However, it is interesting to note that digital channels, such as electronic money institutions (EMIs), payment service providers and online remittance providers, are beginning to become active. In addition, there are certain channels for sending and receiving remittances that are generally recognized at the global level as being "informal" or "semi-informal". These include carrying cash either in person, through friends and relatives or through courier companies. Other examples may include businesses that are not licensed to carry out remittance transfers, but offer these as an unregulated side business. Informal fund transfer systems, such as the hawala system, where flows are netted off and transfers are based on established, trusted networks (which are unlicensed and unregistered), are also popular informal remittance systems. Finally, this paper has concluded with some policy recommendations.

- by Dr Kazi Abdul Mannan
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- Migration, Malaysia, Labor Migration, International Migration

This paper analysed the effect of the relation of the household head to the migrant amongst 10 villages on the remittance determinants and their socioeconomic impacts of remittance receiving households in rural Bangladesh. Using micro-economic data from a survey conducted in 2013, statistical analysis was carried out on 300 rural households. The empirical findings provided that the household head relation to the migrant such as father, mother, wife and brother has variation of remittance determinants and their socioeconomic impact in rural area at the origin. The household unit analysis also showed that remittance determinants and socio-economic impact vary from household head relation at the same community level of households. Moreover, relationship between the socioeconomic impact from remittance and demographic determinants also vary due to the household head relationship discrimination among the same rural area at the origin country.

- by Dr Kazi Abdul Mannan and +1
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- Migration, Irregular Migration, Labor Migration, International Migration

The integration of the countries of eastern and southeastern Europe into global flows of migration has become a major issue not only in migration policy debates , but also in analysing longer term social change in the region. Changes in the magnitudes of migrant remittances can be of crucial social and political importance. In this study, I link a conceptual contribution with a three-step empirical inquiry. First, I conceptualize migrant remittances as a form of external economic dependency. Next, I describe recent changes in the strength of the empirical relationship between migrant remittances as percentages of the GDP and per capita GDP for all societies of the world utilizing data from two online data sets. Employing what Charles Tilly (1984) called " variation-finding comparison, " I examine, next, the – as it turns out, quite sizeable – residual variation in the relative magnitude of remittances that remains after controlling for per capita GDP, and interpret it as a marker for patterns of remittance dependency. Finally, I trace the recent trajectories of the societies that had, until one generation ago, constituted the Soviet " bloc " against the backdrop of the global distribution in remittance dependency. The data have been adopted from two sources: Estimates for migrant remittances as percentages of the GDP of their home country come from the online World Develop

- by József Böröcz
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- Industrial And Labor Relations, History, European History, Economic History

The French Development Agency (AFD) Research Department, the World Bank Development Research Group (DECRG) and the Center for Global Development (CGD) are jointly organizing the 8th International Conference on “Migration and Development”. The conference is devoted to investigating ways in which international migration affects economic and social change in developing countries. Possible topics include the effects of migration on poverty, inequality, and human capital formation; social networks and migration; diaspora externalities; remittances; brain drain; migration and institutional/technological change.

- by Jørgen Carling
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- Development Studies, Migration, Migration Studies, Economics of Remittances

Remittance plays a critical role for small economies like Georgia as an unusual means of financing. In policy-making decisions, an understanding of the essence of the relationship between the amount of money exchanged and inflation is important. The paper studies the impact of remittance inflows, using quarterly data spanning a period (2000-2018), on the inflation rate in Georgia. The paper revealed that all independent variables have an effect on the long-run inflation rate; long-run inflation is positively associated with the leading explanatory variable remittance, and no relation is found in the short-run between remittance and inflation. The paper found that inflation's adjustment level to its equilibrium is 12% annually.

- by Md. Hasanur Rahman and +1
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- Inflation Theory, Economics of Remittances, Remittances, Inflation

Educational attainment of the household member is one of the micro-economic determinant of remittances remains an unclear in terms of level of education. This paper analyse household microeconomic survey data. Employ three stages multivariate analysis carry out two regressions equations
on 300 rural households. The empirical findings provide that the education is not significant determinant remittances while unit analysis shows that the significance relationship depends on the level of education of the migrant and the household head. Such level of education is also move with the cycle of socio-demographic and socio-economic characteristics of the migrant, household head and household composition.

- by Dr Kazi Abdul Mannan
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- Migration, Irregular Migration, Labor Migration, International Migration

This paper analysed the effect of gender differences of household head amongst 10 villages on the remittance determinants and their socioeconomic impacts of remittance receiving households in rural Bangladesh. Using micro economic data from a survey conducted in 2013, multivariate analysis was carried out on 300 rural households. The empirical findings provided that the remittance determinants (migrant age, marital status and number of visit; household head age, marital status, level of education and employment status) and impacts (saving and investment patterns; determinants: age of migrant, number of visit by the migrant, marital status of the migrant, age and education of household head) vary from male to female household head at the same community level of the households. The study suggest that the strong gender differences in the remittance behaviour of Bangladeshi households and highlight the importance of differentiating with respect to gender background when analysing the determinants of remittances.

- by Dr Kazi Abdul Mannan and +1
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- Irregular Migration, Labor Migration, International Migration, Migration Studies

I examine the causal effects of long-term exposure to conflict, measured at the micro level, on households' receipt of remittances. Using IV estimation to overcome the endogeneity of conflict exposure and remittance receipts, and controlling for a range of confounding factors, I find that, contrary to the literature from country-level case studies, long-term exposure to conflict reduces households' likelihood of receiving any remittances at all, as well as the average amounts of remittances received. The negative effects of long-term conflict exposure on remittances are also stronger for groups that are more likely to use such receipts to invest, rather than for consumption, which suggests that remittances are lower in conflict-affected areas due to the higher risk and insecurity of investments. While existing studies treat conflict only as a source of hardship that creates the need for remittances motivated by altruism, I find that conflict may discourage investment-focused remittances by dampening the investment climate and compelling a revaluation of remitters' continuing and long-term financial interests in their violence-affected origins, alluding to a significant micro-macro gap in the literature on conflict and remittances.

- by Yashodhan Ghorpade
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- Conflict, Pakistan, Economics of Remittances, Remittances

This paper examines the effects of remittances on the Moroccan economic growth and their implications for economic policy choices, with particular attention to those relating to the exchange rate regime. In order to verify the link between remittances and development in Morocco, the study employs a VAR approach and variance decompositions analysis. Its result is that, for Morocco, the remittances have been a fundamental engine of economic growth, pro-cyclic and constant in time. This conclusion implies that the role of remittances in the Moroccan economic development must be ever present in economic policy decisions and, especially, in the exchange rate policy. In the opinion of authors, for a country, such as Morocco, characterized by strong migration outflows, directed mainly towards euro area, and by significant remittance inflows in the currency of the same area, the best exchange rate system is a basket peg, whose composition reflects not only the direction of trade and financial flows, but also those of migration flows and remittances.

This paper analysed the effect of marital status of household members amongst 10 villages on the remittance determinants of remittance receiving households in rural Bangladesh from Italy. Using micro-economic data from a survey conducted in 2013, multivariate analysis was carried out on 300 rural households. The empirical findings provided that the remittance micro-economic determinants are associates with socio-economic that vary from married to unmarried migrant and household head at the same community level of the households. The study suggests that marital status has strong correlation with socio-economic as well as socio-demographic characteristics in the remittance behaviour of Bangladeshi households. Thus highlight the importance of differentiating with respect to marital status when analysing the determinants of remittances.

- by Dr Kazi Abdul Mannan
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- Migration, Labor Migration, International Migration, Migration Studies

The present study investigates the investment variation of remittance determinants in rural area at the origin. Using micro-economic data from a survey conducted in 2013, multivariate analysis was carried out on 300 rural households. The empirical results show that the significance level and determinants vary from the investment in financial sector and specially investment in share market. Investment in financial sectors is strongly significance with the household remittances, educational level of migrants and household heads, household head relation to migrant and income of the household. On the other hand, investment in share market is highly significant with the duration of migration, marital status and employment status of the household head; and religion and income of the household.

- by Dr Kazi Abdul Mannan
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- Migration, Labor Migration, International Migration, Migration Studies

- by Azer Dilanchiev
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- Inflation Theory, Economics of Remittances, Remittances, Inflation

There is a significant volume of research studying the impact of foreign capital flows on unemployment. The investigated variables in this paper include remittance inflows, FDI, as well as tourism spending, while additional variables that may have an impact on the unemployment rate have also been included to minimize the risk of omitted variable bias. The paper investigates the impact of foreign capital inflows on three different types of unemployment: youth unemployment, unemployment of those without college degrees, and unemployment of those with degrees. The paper implements an OLS regression to analyse the impact of these variables in Croatia and the Czech Republic between 1997 and 2020. The paper concludes that remittance inflows have the most prominent role in decreasing the unemployment rate in Croatia. It further concludes that domestic factors and the growth of the aggregate economy, rather than foreign capital factors, are key determinants of the unemployment rate in the Czech Republic. The paper highlights the lacking contribution of educational spending on minimizing the unemployment rate and proposes that educational spending needs to reconsider the real-world demands of the labour market.

- by Azer Dilanchiev
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- Inflation Theory, Economics of Remittances, Remittances, Inflation

This paper analysed the household head relation to the migrant and remittances determinants among ten villages on the remittances receiving households in rural Bangladesh. The household survey data from Bangladesh for the period of July to December, 2013, to analyse determinants of remittances at the left behind household members. Rather than multilevel models, use a three stages backward regressions elimination estimation process and build up econometric best fit model of remittances, which helps us the focus the analysis on the explanation of remittances determinants heterogeneity in micro-economic level of studies. The empirical findings suggest that the household head relation to the migrant is one of the strong determinants of remittances as well as other variables. In addition, the household head relation to migrant such a father, mother, brother and wife also have different influential factors while the most common variable as number of visit by the migrant at the origin is strongly associates with all the relationship to the migrant although level of significance has slightly discrimination. Overall, the findings suggests that the age of migrant are strongly associates with father, wife and brother relation of the household head while the age of household head as father and wife. The investment in housing development strongly associates wife, brother and mother household head whereas household living expenses with father and wife. Individual determinants such as household income, land and marital status of the migrant are strongly associates with father, wife and mother household head respectively.

- by Dr Kazi Abdul Mannan
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- Migration, Labor Migration, International Migration, Forced Migration