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Remittance Receipt and Business Ownership in the Dominican Republic

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  • Catalina Amuedo-Dorantes
  • Susan Pozo

Abstract

Using household-level data from the Dominican communities in the Latin American Migration Project (LAMP-DR7), we examine the links between remittance receipt and business ownership. We find that while the existence of a family business attracts remittance inflows, these monetary funds are associated with a reduced likelihood of business entrepreneurship. These results are consistent with various hypotheses regarding remittances and business investments. First, remittances may be motivated by the availability of investment opportunities in the home community. Second, remittances may respond to a bequest motive on the part of the emigrant, who may wish to lay claim on family assets when returning home. Lastly, remittances may cause an income effect that reduces family labour force participation and, correspondingly, the likelihood of family-run business investments. Copyright 2006 The Authors Journal compilation 2006 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal World Economy.

Volume (Year): 29 (2006)
Issue (Month): 7 (07)
Pages: 939-956

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Handle: RePEc:bla:worlde:v:29:y:2006:i:7:p:939-956

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Cited by:
  1. Miluka, Juna & Carletto, Calogero & Davis, Benjamin & Zezza, Alberto, 2007. "The Vanishing Farms? The Impact of International Migration on Albanian Family Farming," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9406, European Association of Agricultural Economists.
  2. John Gibson & David McKenzie & Steven Stillman, 2009. "The Impacts of International Migration on Remaining Household Members: Omnibus Results from a Migration Lottery Program," CReAM Discussion Paper Series 0920, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  3. Garcia, Pablo M & Rodriguez-Montemayor, Eduardo, 2010. "A primer of international migration: The Latin American experience and a proposal for a research agenda," MPRA Paper 24147, University Library of Munich, Germany.
  4. Eduardo Rodríguez-Montemayor & Pablo M. García, 2009. "A Primer of International Migration: The Latin American Experience," IDB Publications 9327, Inter-American Development Bank.
  5. Amuedo-Dorantes, Catalina & Georges, Annie & Pozo, Susan, 2008. "Migration, Remittances and Children’s Schooling in Haiti," IZA Discussion Papers 3657, Institute for the Study of Labor (IZA).
  6. Amuedo-Dorantes, Catalina & Pozo, Susan & Vargas-Silva, Carlos, 2007. "Remittances and the Macroeconomy: The Case of Small Island Developing States," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  7. Susan Pozo & José R. Sánchez-Fung & Amelia U. Santos-Paulino, 2010. "Economic Development Strategies in the Dominican Republic," Working Paper Series wp2010-115, World Institute for Development Economic Research (UNU-WIDER).
  8. Jadotte, Evans, 2009. "International Migration, Remittances and Labour Supply: The Case of the Republic of Haiti," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).

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