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Migration, Remittances, and Entrepreneurship: A Seemingly Unrelated Bivariate Probit Approach

Author

Listed:
  • Mrika Kotorri

    (University of Prishtina 'Hasan Prishtina', Kosovo)

  • Besnik A. Krasniqi

    (University of Prishtina 'Hasan Prishtina', Kosovo)

  • Marina Dabic

    (Nottingham Trent University, UK The University of Zagreb, Faculty of Economics and Business Croatia, UK)

Abstract

The aim of this paper is to examine the interdependence between the decision to invest in entrepreneurship and the receipt of remittances. Firstly, a conceptual framework is developed within the household utility-maximisation model, wherein households are seen to make decisions on entrepreneurship and remittances simultaneously. Guided by this, the model is specified and estimated, employing the seemingly unrelated bivariate probit model upon a random sample stemming from the Kosovo population census. The findings suggest broad support for the household approach. As expected, the two decisions are simultaneously determined and, while remittances have a positive impact on entrepreneurship, no evidence is found for the statistical importance of migration. Household entrepreneurial behaviour is determined by demographic characteristics, income, relative wealth, education, and type of area.

Suggested Citation

  • Mrika Kotorri & Besnik A. Krasniqi & Marina Dabic, 2020. "Migration, Remittances, and Entrepreneurship: A Seemingly Unrelated Bivariate Probit Approach," Remittances Review, Remittances Review, vol. 5(1), pages 15-36, April.
    • Handle: RePEc:mig:remrev:v:5:y:2020:i:1:p:15-36
    DOI: https://doi.org/10.33182/rr.v5i1.807
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    Citations

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    Cited by:

    1. Folorunsho M. Ajide & Tolulope T. Osinubi, 2022. "Foreign aid and entrepreneurship in Africa: the role of remittances and institutional quality," Economic Change and Restructuring, Springer, vol. 55(1), pages 193-224, February.

    More about this item

    Keywords

    Migration; remittances; entrepreneurship; bivariate probit;
    All these keywords.

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

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