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1 – 10 of 759
Article
Publication date: 1 January 1999

Richard P.C. Brown and Dennis A. Ahlburg

For more than a quarter of a century there has been substantial emigration from the smaller island states of the Pacific to metropolitan fringe states, mainly the USA, New Zealand…

2145

Abstract

For more than a quarter of a century there has been substantial emigration from the smaller island states of the Pacific to metropolitan fringe states, mainly the USA, New Zealand and Australia. Migration reduced unemployment in island states and remittances have contributed to raised living standards. This paper provides a better understanding of the implications of remittances for economic and social development in the Pacific region. It discusses alternative explanations of remittances, estimates of the size of remittance flows, the impact of remittances on the home country, and policies that influence the flow of remittances. Much of the empirical work in this paper is based on Tonga and Samoa, although the findings apply more generally to other Pacific island nations.

Details

International Journal of Social Economics, vol. 26 no. 1/2/3
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 2 April 2019

Navita Pal and Rama Pal

The purpose of this paper is to empirically investigate whether the motives behind sending remittances differ for the migrants from single- and multi-migrant families in India.

Abstract

Purpose

The purpose of this paper is to empirically investigate whether the motives behind sending remittances differ for the migrants from single- and multi-migrant families in India.

Design/methodology/approach

The paper uses the second round of India Human Development Survey conducted in the year 2012 to analyse migrant’s motives using the two-part model and the sample selection model (SSM). Here, the probit model is used to model whether the migrant sends the remittances and then the amount of remittances is modelled using the ordinary least squares method. The SSM assumes that these two decisions are interdependent. This migrant-level study is the first to segregate single- and multiple-migrant settings and compare them for the existence of altruism or inheritance motives.

Findings

The findings indicate altruism as the main motive behind remittances for the single migrants in India. On the other hand, presence of inheritance motive is evident along with altruism in the multi-migrant setting.

Research limitations/implications

The analysis is restricted due to limited availability of information on migrant as the data are collected from the migrant’s family at origin.

Originality/value

This is the first study to use a unique nationally representative survey which enables it to point out differences in the motives behind remittances for the single-migrant and multi-migrant settings in India.

Details

International Journal of Social Economics, vol. 46 no. 6
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 1 March 1986

Francisco L. Rivera‐Batiz

This article provides a formal framework for the analysis of the impact of international migration in the presence of remittances. The discussion differentiates between temporary…

Abstract

This article provides a formal framework for the analysis of the impact of international migration in the presence of remittances. The discussion differentiates between temporary and permanent migration and between the effects of remittances that raise investment and those that raise consumption spending in the source country. Changes in prices, income distribution and national welfare are examined.

Details

Journal of Economic Studies, vol. 13 no. 3
Type: Research Article
ISSN: 0144-3585

Open Access
Article
Publication date: 29 March 2021

Rasha Qutb

Migrants’ remittances to Egypt have increased considerably in both size and importance over the past 40 years. This increase has made Egypt one of the top remittance recipients in…

3096

Abstract

Purpose

Migrants’ remittances to Egypt have increased considerably in both size and importance over the past 40 years. This increase has made Egypt one of the top remittance recipients in the world and the leading recipient country in the Middle East. As migrant remittances are one of Egypt's main sources of foreign capital, this study aims to identify the impact of these remittances on economic growth.

Design/methodology/approach

The study collects annual data on migrant remittances sent to Egypt during the period 1980–2017. The study uses the Augmented Dickey–Fuller test and Johnsen's Co-integration test to establish long-run relationships between variables. Then, a vector error correction model (VECM) is used to combine long-run and short-run dynamics, and a Granger causality test is performed. Finally, diagnostic tests of the VECM are conducted.

Findings

Results reveal that migrants’ remittances to Egypt are countercyclical in the sense that they have a long-term negative impact on economic growth. These results are determined by the Granger causality between migrants' remittances, inflation rate and imports.

Practical implications

The study can help policymakers to develop appropriate policies to turn migrants' remittances into a reliable source of capital that could result in a stable economic growth.

Originality/value

Although various empirical studies have examined the growth effect of remittances, most of them are based on cross-country data. This study contributes to the field by attempting to close a gap in the literature by empirically analyzing the impact of remittances on a single country over a long period.

Details

Review of Economics and Political Science, vol. 7 no. 3
Type: Research Article
ISSN: 2356-9980

Keywords

Article
Publication date: 11 May 2012

B. Mak Arvin and Byron Lew

Studies on the determinants of remittances focus primarily on a single country or undertake cross‐country analyses using aggregate data. By comparison, there is a dearth of…

1320

Abstract

Purpose

Studies on the determinants of remittances focus primarily on a single country or undertake cross‐country analyses using aggregate data. By comparison, there is a dearth of empirical evidence on the determinants of remittances from multiple host to multiple destination countries. To address this deficiency, the purpose of this paper is to use a novel dataset which captures these bilateral flows.

Design/methodology/approach

The paper concentrates on three sets of explanatory variables: those which characterize the pair relationship, those that pertain to migrants' host country, and those related to the migrants' home country.

Findings

Cultural and political factors play a fundamental role. Altruism is not key in migrant remittances; investment motives are more important. Bilateral aid inflows bear a direct relationship to remittances. The marginal effect of happiness (in migrants' host and home countries) on remittances is positive for a large percentage of countries in the sample.

Practical implications

Results nullify the oft‐asserted role of remittances in assisting with adverse economic conditions, such as inflation. They also identify a possible nexus between remittances and foreign aid – a link that heretofore has not been identified or discussed in the literature or recognized by policy‐makers.

Originality/value

The contribution of the paper is its use of bilateral data to present evidence on remittances capturing not only North‐South, but also South‐South flows. The paper also contributes to the literature by considering, for the first time, some additional variables as potential determinants of remittances, chief among them the level of happiness of migrants' host and home countries, as well as the level of aid disbursed to migrants' home country.

Details

Journal of Economic Studies, vol. 39 no. 2
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 10 August 2015

Muhammad Azam

The purpose of this paper is to examine the macroeconomic impact of migrant workers’ remittances on economic growth in four developing Asian countries namely: Bangladesh, India…

2290

Abstract

Purpose

The purpose of this paper is to examine the macroeconomic impact of migrant workers’ remittances on economic growth in four developing Asian countries namely: Bangladesh, India, Pakistan and Sri Lanka.

Design/methodology/approach

This study utilizes annual time series data over the period 1976-2012 and the ordinary least squares as an analytical technique for parameters estimation.

Findings

Empirical results support the existence of a significant positive relationship between migrant workers remittances and economic growth. The other control variables such as foreign direct investment, openness to trade and infrastructure are also found to be statistically significant with expected signs.

Practical implications

The findings of this study are expected to guide policy makers in formulating the right and relevant policies through which migrant workers’ remittances can be made more productive and its benefits for both migrants and the country of origin are maximized. Consequently, it will foster economic growth and development.

Originality/value

This paper provides some valuable evidences on the significance of migrant workers remittances as a source of economic growth. Moreover, the study differs from the erstwhile studies in terms of control variables, time period and method of estimation. Finally, the empirical results established are relatively robust.

Details

International Journal of Social Economics, vol. 42 no. 8
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 1 January 2009

Steve Snyder and Wen S. Chern

The objective of this paper is to evaluate the impact of remittance income on rural households in China.

1746

Abstract

Purpose

The objective of this paper is to evaluate the impact of remittance income on rural households in China.

Design/methodology/approach

Using data from a large survey of farming households in three Chinese provinces, the impacts of remittances and other types of income on consumption, production expenditures is evaluated. The econometric models used in this study include logit, tobit and ordinary least squares models.

Findings

It is found that remittances increase nondurable consumption, but not as much as local wages and that there is no difference in the impact on agricultural production spending between remittance and local wages. The large majority of remittances are reported by the households of non‐permanent migrants, suggesting that the fear of losing land allocations has a strong impact on migration decision.

Originality/value

The paper uses a large data set from three distinct provinces of China and is among the first to investigate the different types of remittance and their impacts on both consumption and production activities of Chinese rural households.

Details

China Agricultural Economic Review, vol. 1 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 8 March 2011

Deodat E. Adenutsi

The purpose of this paper is to provide further insights into understanding the finance‐growth nexus by verifying the hypothesis that financial development promotes economic…

2395

Abstract

Purpose

The purpose of this paper is to provide further insights into understanding the finance‐growth nexus by verifying the hypothesis that financial development promotes economic growth through its capacity to attract increased international migrant remittances to Ghana.

Design/methodology/approach

A dynamic equilibrium‐correction mechanism model for the period 1987(3)‐2007(4) was estimated following the Johansen cointegration procedure. This approach produced maximum likelihood estimators of the unconstrained cointegrating vector, and suggested the number of cointegrating vectors without relying on an arbitrary normalization.

Findings

The findings reveal two stylized facts with reference to Ghana. First, although financial development Granger‐causes international migrant remittance inflows, it is in itself directly detrimental to endogenous growth. Second, international migrant remittance inflows are statistically significant in explaining variations in endogenous growth in the short run as well as in the long run.

Practical implications

Since directly, financial development hampers endogenous growth, but Granger‐causes increased inflows of migrant remittances, and these remittances impact positively but marginally on endogenous growth, it follows that the sequencing of implementing Ghana's financial reform programmes should be re‐examined, whilst an enabling environment is created to induce Ghanaians living abroad to remit home through official channels.

Originality/value

International migrant remittances were found to be statistically significant in promoting endogenous growth, albeit marginally. Financial development does not directly engender growth, unless it succeeds in attracting non‐debt foreign capital in the form of remittances through the formal sector. Financial development causes migrant remittance inflows which impact positively on growth.

Details

Studies in Economics and Finance, vol. 28 no. 1
Type: Research Article
ISSN: 1086-7376

Keywords

Article
Publication date: 5 September 2016

John Bosco Nnyanzi

The purpose of this paper is to investigate the macro-economic and institutional drivers of remittance inflows to Africa.

Abstract

Purpose

The purpose of this paper is to investigate the macro-economic and institutional drivers of remittance inflows to Africa.

Design/methodology/approach

The paper uses an enhanced gravity model in a random effects framework to test two hypotheses dominant in literature as well as the institutional quality hypothesis. A bilateral data set is created from the most recent available remittance data set to afford the capture of the impact of the selected macro-economic variables from both the host and recipient countries.

Findings

The results provide support for the trio hypotheses. A key finding is the co-existence of altruism and self-interest motives. Also, control of corruption, financial development and a reduction in unofficial economic activity are observed to facilitate remittance inflows. The authors confirm the resilience of remittances during the global crisis and document a positive significant relationship between remittance inflows on the one hand and host migration stock, age dependency, etc., on the other.

Practical implications

This paper generates various insights in the design of relevant macro-economic and institutional policies to enhance remittance inflows and the productive use of the same for purposes of economic growth and development via poverty reduction and secure resource flow.

Originality/value

The majority of previous studies on the determinants of remittance inflows have basically focussed on the microeconomic variables, an approach that could understate the macro-economic impact of remittances and lead to inadequate policy formulation. The use of an enhanced gravity model on a newly created bilateral data set in the analysis is a nuance in the economics of remittances. Besides, previous studies have often ignored the institutional environment as critical in the remittance-determinant model.

Details

African Journal of Economic and Management Studies, vol. 7 no. 3
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 3 October 2016

Artjoms Ivlevs

The purpose of this paper is to explore the effect of remittances on informal employment in the migrants’ countries of origin, looking both at the remittance-receiving and…

Abstract

Purpose

The purpose of this paper is to explore the effect of remittances on informal employment in the migrants’ countries of origin, looking both at the remittance-receiving and non-migrant households.

Design/methodology/approach

Using data from a large survey conducted in six transition economies of Eastern Europe and Central Asia, the determinants of three labour market outcomes – not working, working formally and working informally – are estimated in a multinomial probit model. The endogeneity of remittances is dealt with instrumental variables following the two-stage residual inclusion technique. To assess possible impact of remittances on non-migrant households, conditional correlations between the labour market outcomes of non-migrant households and the region-level share of remittance receivers are obtained.

Findings

Both correlational and instrumental variable analyses suggest that that receiving remittances increases the likelihood of working informally. At the regional level, high prevalence of remittances is associated with a higher likelihood of informal work among the non-migrant households. Migration and remittances may thus be contributing to informal employment in migration-sending countries.

Research limitations/implications

The empirical analysis is based on cross-sectional data, which do not allow isolating the effects of unobserved respondent heterogeneity. To deal with this issue, future research could use panel data.

Originality/value

The study explicitly considers the effects of remittances on formal and informal employment of remittances receivers as well as people who do not receive remittances. It advances the understanding of what drives informality in developing and transition economies.

Details

International Journal of Manpower, vol. 37 no. 7
Type: Research Article
ISSN: 0143-7720

Keywords

1 – 10 of 759