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Motivations for Remittances: Evidence from Moldova

Author

Listed:
  • Piracha, Matloob

    (University of Kent)

  • Saraogi, Amrita

    (Bunge Ltd)

Abstract

This paper explores the factors that account for the receipt of remittances across households in Moldova who have migrants abroad. Unlike most of the existing literature, we approach our research question from the perspective of the recipient household and use it to interpret the determinants/motivations of remittances. Our results show that a combination of household and migrant characteristics and some community level variables are the key elements in explaining the remittance behaviour in Moldova. Drawing from these estimates, we conclude that altruism and investment (proxied by the level of economic development at the regional level) are the two main motives behind remittance flows to Moldova.

Suggested Citation

  • Piracha, Matloob & Saraogi, Amrita, 2011. "Motivations for Remittances: Evidence from Moldova," IZA Discussion Papers 5467, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5467
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    References listed on IDEAS

    as
    1. World Bank, 2005. "Global Economic Prospects 2006 : Economic Implications of Remittances and Migration," World Bank Publications - Books, The World Bank Group, number 7306, December.
    2. Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November.
    3. Catalina Amuedo-Dorantes & Susan Pozo, 2006. "Remittances as insurance: evidence from Mexican immigrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(2), pages 227-254, June.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Adrian J. Bailey & Dušan Drbohlav & Dagmara Dzúrová, 2021. "Migrant Remitting as Transnational Practice: Moldovans in Italy and Czechia," SAGE Open, , vol. 11(2), pages 21582440211, May.
    2. Alpaslan Akay & Corrado Giulietti & Juan Robalino & Klaus Zimmermann, 2014. "Remittances and well-being among rural-to-urban migrants in China," Review of Economics of the Household, Springer, vol. 12(3), pages 517-546, September.
    3. Éric Darmon & Laetitia Chaix & Dominique Torre, 2016. "M-payment use and remittances in developing countries: a theoretical analysis," Revue d'économie industrielle, De Boeck Université, vol. 0(4), pages 159-183.
    4. repec:pri:indrel:dsp01cn69m419r is not listed on IDEAS
    5. GHERBOVEŢ, Sergiu, 2014. "Remittance. Forecasting Methodology And Instruments," Journal of Financial and Monetary Economics, Centre of Financial and Monetary Research "Victor Slavescu", vol. 1(1), pages 163-167.
    6. Mduduzi Biyase & Fiona Tregenna, 2016. "Determinants of remittances in South Africa," SALDRU Working Papers 176, Southern Africa Labour and Development Research Unit, University of Cape Town.
    7. Kaczmarczyk, Pawel, 2013. "Money for Nothing? Ukrainian Immigrants in Poland and their Remitting Behaviors," IZA Discussion Papers 7666, Institute of Labor Economics (IZA).
    8. Metzger, Martina & Riedler, Tim & Pédussel Wu, Jennifer, 2019. "Migrant remittances: Alternative money transfer channels," IPE Working Papers 127/2019, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    9. Oteng-Abayie, Eric & Awuni, Prosper Ayinbilla & Adjei, Thomas Kwame, 2020. "The Impact of Inward Remittances on Economic Growth in Ghana," African Journal of Economic Review, African Journal of Economic Review, vol. 8(3), November.
    10. Torre Dominique & Eric Darmon & Laetitia Chaix, 2016. "M-payment use and remittances in developing countries: a theoretical analysis," Post-Print halshs-01576774, HAL.

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    More about this item

    Keywords

    migration; remittances; Moldova;
    All these keywords.

    JEL classification:

    • 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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