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Crime and Remittance Transfers

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  • Carlos Vargas-Silva

    () (Department of Economics and International Business, College of Business Administration, Sam Houston State University, Huntsville, TX 77341-2118, USA.)

Abstract

This article examines the determinants of remittance transfers, specifically focusing on the impact of crimes on remittances. Using the 2003 Quality of Life Survey of Colombia, we find that both domestic and international transfers are negatively affected by crime. That is, because crime may have an adverse effect on household assets and the return to investments in the home community, migrants may decrease transfers made for self-interested purposes such as future inheritance or investment. Although results suggest that a portion of transfers are sent for self-interest motives, variables related to the household indicate that altruism is also an important motivation for remitting. Eastern Economic Journal (2009) 35, 232–247. doi:10.1057/eej.2008.14

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Bibliographic Info

Article provided by Palgrave Macmillan in its journal Eastern Economic Journal.

Volume (Year): 35 (2009 Spring)
Issue (Month): 2 ()
Pages: 232-247

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Handle: RePEc:pal:easeco:v:35:y:2009:i:2:p:232-247

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  1. Jaime Alonso-Carrera & Jordi Caballé & Xavier Raurich, 2004. "Aspirations, Habit Formation, and Bequest Motive," UFAE and IAE Working Papers 641.04, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  2. George M. Constantinides & John B. Donaldson & Rajnish Mehra, 2005. "Junior is Rich: Bequests as Consumption," NBER Working Papers 11122, National Bureau of Economic Research, Inc.
  3. Dean Yang & HwaJung Choi, 2005. "Are Remittances Insurance? Evidence from Rainfall Shocks in the Philippines," Working Papers 535, Research Seminar in International Economics, University of Michigan.
  4. Catalina Amuedo-Dorantes & Susan Pozo, 2006. "Migration, Remittances, and Male and Female Employment Patterns," American Economic Review, American Economic Association, vol. 96(2), pages 222-226, May.
  5. Shleifer, Andrei & Summers, Lawrence H. & Bernheim, B. Douglas, 1986. "The Strategic Bequest Motive," Scholarly Articles 3721794, Harvard University Department of Economics.
  6. de la Briere, Benedicte & Sadoulet, Elisabeth & de Janvry, Alain & Lambert, Sylvie, 2002. "The roles of destination, gender, and household composition in explaining remittances: an analysis for the Dominican Sierra," Journal of Development Economics, Elsevier, vol. 68(2), pages 309-328, August.
  7. 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.
  8. Fernando Borraz, 2005. "Assessing the Impact of Remittances on Schooling: the Mexican Experience," Global Economy Journal, De Gruyter, vol. 5(1), pages 9.
  9. Adams, Richard H. Jr., 2003. "International migration, remittances, and the brain drain ; a study of 24 labor exporting countries," Policy Research Working Paper Series 3069, The World Bank.
  10. Newey, Whitney K., 1987. "Efficient estimation of limited dependent variable models with endogenous explanatory variables," Journal of Econometrics, Elsevier, vol. 36(3), pages 231-250, November.
  11. Levitt Steven & Mauricio Rubio, 2000. "Understanding Crime in Colombia and What Can Be Done About It," WORKING PAPERS SERIES. DOCUMENTOS DE TRABAJO 003735, FEDESARROLLO.
  12. Donald Cox & Emmanuel Jimenez, 1993. "Motives For Private Transfers Over The Life Cycle: Analytical Framework And Evidence For Peru," Boston College Working Papers in Economics 245, Boston College Department of Economics.
  13. 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.
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Cited by:
  1. Naufal, George S & Vargas-Silva, Carlos, 2009. "Changing Fertility Preferences One Migrant at a Time: The Impact of Remittances on the Fertility Rate," IZA Discussion Papers 4066, Institute for the Study of Labor (IZA).

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