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A behavioural approach to remittances analysis

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  • Meyer, Wiebke
  • Mollers, Judith
  • Buchenrieder, Gertrud

Abstract

This paper approaches the migrant’s motivation to remit from a new, behavioural perspective. We apply the well-established Theory of Planned Behaviour (TPB) using a structural equation model for the first time for this specific research question. Our micro-dataset stems from a 2009/10 survey, covering Albanian migrants from Kosovo living in Germany as well as their home-country households. More than 90% of Kosovar migrants living in Germany remit. However, little is known about their underlying motivations. Our analytical results show that the migrant’s attitude and norms are decisive for the remitting behaviour. The common socio-economic approach lacks explanatory power backed by theory.

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Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 126428.

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Date of creation: 2012
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Handle: RePEc:ags:iaae12:126428

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Keywords: Kosovo; Germany; remittances; structural equation modelling; Theory of Planned Behaviour; Consumer/Household Economics; Institutional and Behavioral Economics; Political Economy; F24; H30; O15;

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  1. Barham, Bradford & Boucher, Stephen, 1998. "Migration, remittances, and inequality: estimating the net effects of migration on income distribution," Journal of Development Economics, Elsevier, vol. 55(2), pages 307-331, April.
  2. Dustmann, Christian & Mestres, Josep, 2010. "Remittances and temporary migration," Journal of Development Economics, Elsevier, vol. 92(1), pages 62-70, May.
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  5. Marilena Giannetti & Daniela Federici & Michele Raitano, 2009. "Migrant remittances and inequality in Central-Eastern Europe," International Review of Applied Economics, Taylor & Francis Journals, vol. 23(3), pages 289-307.
  6. 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.
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  8. Acosta, Pablo & Calderon, Cesar & Fajnzylber, Pablo & Lopez, Humberto, 2008. "What is the Impact of International Remittances on Poverty and Inequality in Latin America?," World Development, Elsevier, vol. 36(1), pages 89-114, January.
  9. Laetitia Duval & François-Charles Wolff, 2009. "Remittances matter: Longitudinal evidence from Albania," Working Papers hal-00421234, HAL.
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  11. Zimmermann, Klaus F. (ed.), 2005. "European Migration: What Do We Know?," OUP Catalogue, Oxford University Press, number 9780199257355, October.
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  13. Stark, Oded & Taylor, J Edward & Yitzhaki, Shlomo, 1986. "Remittances and Inequality," Economic Journal, Royal Economic Society, vol. 96(383), pages 722-40, September.
  14. World Bank, 2008. "The Migration and Remittances Factbook 2008," World Bank Publications, The World Bank, number 6383, February.
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  16. Hulya Ulku, 2010. "Remitting Behaviour of Turkish Migrants: Evidence from Household Data in Germany," Brooks World Poverty Institute Working Paper Series 11510, BWPI, The University of Manchester.
  17. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
  18. Russell, Sharon Stanton, 1986. "Remittances from international migration: A review in perspective," World Development, Elsevier, vol. 14(6), pages 677-696, June.
  19. Ringle, Christian M. & Götz, Oliver & Wetzels, Martin & Wilson, Bradley, 2009. "On the Use of Formative Measurement Specifications in Structural Equation Modeling: A Monte Carlo Simulation Study to Compare Covariance-Based and Partial Least Squares Model Estimation Methodologies," MPRA Paper 15390, University Library of Munich, Germany.
  20. Funkhouser, Edward, 1995. "Remittances from International Migration: A Comparison of El Salvador and Nicaragua," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 137-46, February.
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