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Informal Insurance Arrangements in Ghanaian Migrants' Transnational Networks: The Role of Reverse Remittances and Geographic Proximity

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  • Mazzucato, Valentina
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    Abstract

    Summary Risk pooling literature argues the need for geographic proximity to ensure the functioning of informal insurance arrangements. This paper investigates whether these arrangements exist between migrants and their network members back home and, if so, how they work in the absence of geographic proximity. Analysis of a simultaneous matched sample of migrants in the Netherlands and network members in Ghana reveals the existence of reverse remittances. These remittances show that there is risk pooling between migrants and network members. The paper elaborates on the institutional arrangements that make such a system possible.

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    Bibliographic Info

    Article provided by Elsevier in its journal World Development.

    Volume (Year): 37 (2009)
    Issue (Month): 6 (June)
    Pages: 1105-1115

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    Handle: RePEc:eee:wdevel:v:37:y:2009:i:6:p:1105-1115

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    Web page: http://www.elsevier.com/locate/worlddev

    Related research

    Keywords: migration remittances insurance transnational networks Africa Ghana;

    References

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    Cited by:
    1. Yaw Nyarko & Kwabena Gyimah-Brempon, 2011. "Social Safety Nets: The Role of Education, Remittances and Migration," RSCAS Working Papers 2011/26, European University Institute.
    2. Isabelle Chort & Flore Gubert & Jean-Noël Senne, 2011. "Migrant Networks as a Basis for Social Control : Remittance Incentives among Senegalese in France and Italy," Working Papers 2011-34, Centre de Recherche en Economie et Statistique.
    3. Fransen, Sonja & Mazzucato, Valentina, 2014. "Remittances and Household Wealth after Conflict: A Case Study on Urban Burundi," World Development, Elsevier, vol. 60(C), pages 57-68.

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