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Microeconomic determinants of migrant remittances to Nigerian households


Author Info

  • Nwosu O. Emmanuel

    (Centre for Demographic and Allied Research, Department of Economics, University of Nigeria, Nsukka)

  • Fonta M. William

    (United Nations University Institute for Natural Resources in Africa (UNU-INRA))

  • Aneke Gladys

    (Head, Department of Economics, University of Nigeria, Nsukka)

  • Yuni N. Denis

    (Centre for Demographic and Allied Research, Department of Economics, University of Nigeria, Nsukka)

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    This study analyses the determinants of both the decision to remit money and the total remittances by Nigerian migrants. The study distinguishes itself from other existing migration studies in Nigeria by focusing on the microeconomic determinants of remittances from both the sending and receiving end. A recent and richer remittances survey data for Nigeria by the World Bank is used to extend the analysis to both internal and international migration. Tobit and Heckit's models were used in the analyses. The empirical findings indicate that duration of the migrant in the country of residence, household asset, household size, living in OECD, highest level of education attained before migration, being male, being a son, daughter or father to the head of the household, and type of employment have statistically significant positive impact on both the probability of remitting and the amount of remittances sent by the migrant to the household. These findings vary significantly by the country of current residence of the migrants. All these suggest that the future inflow of remittances to Nigeria would largely depend on the migrant country of destination, level of education prior to migration, and the type of work done by the migrants in the country of current residence. The work situation of the migrant may in turn depend on the macroeconomic conditions in the country of residence.

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    Bibliographic Info

    Article provided by AccessEcon in its journal Economics Bulletin.

    Volume (Year): 32 (2012)
    Issue (Month): 4 ()
    Pages: 3425-3438

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    Handle: RePEc:ebl:ecbull:eb-12-00711

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    Related research

    Keywords: Remittances; migration; microeconomic determinants; Tobit and Heckman's Estimators.;

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    1. Jørgen Carling, 2008. "The determinants of migrant remittances," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 582-599, Autumn.
    2. Schiopu, Ioana & Siegfried, Nikolaus, 2006. "Determinants of workers’ remittances: evidence from the European Neighbouring Region," Working Paper Series 0688, European Central Bank.
    3. Giulia Bettin & Riccardo Lucchetti & Alberto Zazzaro, 2011. "Financial development and remittances: micro-econometric evidence," Mo.Fi.R. Working Papers 56, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    4. Catalina Amuedo-Dorantes & Susan Pozo, 2006. "Remittances as insurance: evidence from Mexican immigrants," Journal of Population Economics, Springer, vol. 19(2), pages 227-254, June.
    5. Carlos Vargas-Silva & Peng Huang, 2005. "Macroeconomic Determinants of Workers’ Remittances: Host vs. Home Country’s Economic Conditions," International Finance 0507007, EconWPA, revised 29 Jul 2005.
    6. El-Sakka, M. I. T. & McNabb, Robert, 1999. "The Macroeconomic Determinants of Emigrant Remittances," World Development, Elsevier, vol. 27(8), pages 1493-1502, August.
    7. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492 National Bureau of Economic Research, Inc.
    8. Osili, Una Okonkwo, 2004. "Migrants and Housing Investments: Theory and Evidence from Nigeria," Economic Development and Cultural Change, University of Chicago Press, vol. 52(4), pages 821-49, July.
    9. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-18, October.
    10. Agarwal, Reena & Horowitz, Andrew W., 2002. "Are International Remittances Altruism or Insurance? Evidence from Guyana Using Multiple-Migrant Households," World Development, Elsevier, vol. 30(11), pages 2033-2044, November.
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