Determinants of workers’ remittances: evidence from the European Neighbouring Region
AbstractWorkers’ remittances have become the second largest source of net financial flows to developing countries. However, the main motives for sending remittances remain controversial. This paper examines the importance of altruistic versus investment motives using a new panel data set of bilateral flows from 21 Western European to 7 EU neighbouring countries. We find that altruism is important for remitting, as the GDP differential between sending and receiving countries is positively correlated with the average remittance per migrant. By contrast, interest rate differentials are insignificant, suggesting a weak investment motive. Finally, migrants’ skills raise remittances, while a large informal economy in the sending country depresses official remittance flows. JEL Classification: D13, D64, F22, F24, O15
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Central Bank in its series Working Paper Series with number 0688.
Date of creation: Oct 2006
Date of revision:
Contact details of provider:
Postal: Postfach 16 03 19, Frankfurt am Main, Germany
Phone: +49 69 1344 0
Fax: +49 69 1344 6000
Web page: http://www.ecb.europa.eu/home/html/index.en.html
More information through EDIRC
Postal: Press and Information Division, European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany
Find related papers by JEL classification:
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- F24 - International Economics - - International Factor Movements and International Business - - - Remittances
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-11-18 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Flore Gubert, 2002. "Do Migrants Insure Those who Stay Behind? Evidence from the Kayes Area (Western Mali)," Oxford Development Studies, Taylor and Francis Journals, vol. 30(3), pages 267-287.
- Faini, Riccardo, 1994. "Workers Remittances and the Real Exchange Rate: A Quantitative Framework," Journal of Population Economics, Springer, vol. 7(2), pages 235-45.
- Donald Cox & Zekeriya Eser & Emmanuel Jimenez, 1996.
"Motives for Private Transfers over the Life Cycle: An Analytical Framework and Evidence for Peru,"
Boston College Working Papers in Economics
327., Boston College Department of Economics.
- Cox, Donald & Eser, Zekeriya & Jimenez, Emmanuel, 1998. "Motives for private transfers over the life cycle: An analytical framework and evidence for Peru," Journal of Development Economics, Elsevier, vol. 55(1), pages 57-80, February.
- El-Sakka, M. I. T. & McNabb, Robert, 1999. "The Macroeconomic Determinants of Emigrant Remittances," World Development, Elsevier, vol. 27(8), pages 1493-1502, August.
- Elbadawi, Ibrahim & de Rezende Rocha, Robert, 1992. "Determinants of expatriate workers'remittances in North Africa and Europe," Policy Research Working Paper Series 1038, The World Bank.
- Aysit Tansel & Pinar Yasar, 2010.
"Macroeconomic impact of remittances on output growth: Evidence from Turkey,"
MTransnational Press London, London, UK, vol. 7(2), pages 132-143, October.
- Aysit Tansel & Pinar Yasar, 2010. "Macroeconomic Impact of Remittances on Output Growth: Evidence From Turkey," Working Papers 2010/12, Turkish Economic Association.
- Tansel, Aysit & Yaşar, Pınar, 2010. "Macroeconomic Impact of Remittances on Output Growth: Evidence from Turkey," IZA Discussion Papers 5376, Institute for the Study of Labor (IZA).
- Aysit Tansel & Pinar Yasar, 2010. "Macroeconomic Impact of Remittances on Output Growth: Evidence from Turkey," ERC Working Papers 1002, ERC - Economic Research Center, Middle East Technical University, revised Jun 2010.
- Adenutsi, Deodat E. & Aziakpono, Meshach J. & Ocran, Matthew K., 2011.
"The changing impact of macroeconomic environment on remittance inflows in sub-Saharan Africa,"
37067, University Library of Munich, Germany.
- Deodat E. Adenutsi & Meshach J. Aziakpono & Matthew K. Ocran, 2011. "The Changing Impact Of Macroeconomic Environment On Remittance Inflows In Sub-Saharan Africa," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 3(2 (July)), pages 136-167.
- David G. Blanchflower & Chris Shadforth, 2007.
"Fear, Unemployment and Migration,"
NBER Working Papers
13506, National Bureau of Economic Research, Inc.
- Jeffrey Frankel, 2011.
"Are Bilateral Remittances Countercyclical?,"
Open Economies Review,
Springer, vol. 22(1), pages 1-16, February.
- Frankel, Jeffrey, 2010. "Are Bilateral Remittances Countercylical?," Working Paper Series rwp10-037, Harvard University, John F. Kennedy School of Government.
- Frankel, Jeffrey A., 2010. "Are Bilateral Remittances Countercyclical?," Scholarly Articles 4450131, Harvard Kennedy School of Government.
- Jeffrey A. Frankel, 2009. "Are Bilateral Remittances Countercyclical?," NBER Working Papers 15419, National Bureau of Economic Research, Inc.
- Docquier, Frédéric & Rapoport, Hillel & Salomone, Sara, 2012.
"Remittances, migrants' education and immigration policy: Theory and evidence from bilateral data,"
Regional Science and Urban Economics,
Elsevier, vol. 42(5), pages 817-828.
- Frédéric Docquier & Hillel Rapoport & Sara Salomone, 2011. "Remittances, Migrants’ Education and Immigration Policy: Theory and Evidence from Bilateral Data," Working Papers 2011-27, Department of Economics, Bar-Ilan University.
- Docquier, Frédéric & Rapoport, Hillel & Salomone, Sara, 2011. "Remittances, Migrants' Education and Immigration Policy: Theory and Evidence from Bilateral Data," IZA Discussion Papers 6104, Institute for the Study of Labor (IZA).
- Frédéric DOCQUIER & Hillel RAPOPORT & Sara SALOMONE, 2011. "Remittances, Migrants’Education and Immigration Policy: Theory and Evidence from Bilateral Data," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011012, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Frédéric Docquier & Hillel Rapoport & Sara Salomone, 2011. "Remittances, Migrants' Education and Immigration Policy: Theory and Evidence from Bilateral Data," CReAM Discussion Paper Series 1119, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Sule Akkoyunlu, 2010. "Are Turkish migrants altruistic? Evidence from the macro data," KOF Working papers 10-246, KOF Swiss Economic Institute, ETH Zurich.
- Barua, Shubhasish & Majumder, Md. Alauddin & Akhtaruzzaman, Dr. Md., 2007. "Determinants of Workers’ Remittances in Bangladesh: An Empirical Study," MPRA Paper 15080, University Library of Munich, Germany.
- Nwosu O. Emmanuel & Fonta M. William & Aneke Gladys & Yuni N. Denis, 2012. "Microeconomic determinants of migrant remittances to Nigerian households," Economics Bulletin, AccessEcon, vol. 32(4), pages 3425-3438.
- Zizi GOSCHIN & Monica ROMAN, 2012. "Determinants of the remitting behaviour of Romanian emigrants in an economic crisis context," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 3, pages 87-103, December.
- James Ted McDonald & M. Rebecca Valenzuela, 2009. "The Impact of Skill Mismatch among Migrants on Remittance Behaviour," Social and Economic Dimensions of an Aging Population Research Papers 242, McMaster University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Official Publications).
If references are entirely missing, you can add them using this form.