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What determines the choice of transfer channel for remittances? Evidence from Moldova

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Author Info

  • Melissa Siegel
  • Matthias Lücke

Abstract

We estimate a multinomial logit model to explain the choice of transfer channel (formal services vs. informal operators or personal transfers) by 1139 pairs of migrants and recipients of remittances in Moldova in 2006. Explanatory variables include socioeconomic characteristics of the migrant and other household members, the pattern of migration (destination country, legal status, duration) and financial information (average amount and frequency of payments). Key reasons not to use a formal transfer channel include an emphasis on low transfer cost (rather than speed, convenience, or security), a migrant’s irregular legal status in the host country, and short migration spells

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File URL: https://econstor.eu/bitstream/10419/28343/1/598742689.pdf
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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1515.

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Length: 23 pages
Date of creation: Apr 2009
Date of revision:
Handle: RePEc:kie:kieliw:1515

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Related research

Keywords: migration; remittances; Moldova; transfer channel; money transfer operator; financial sector development;

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Cited by:
  1. Luecke, Matthias & Omar Mahmoud, Toman & Steinmayr, Andreas, 2009. "Labour migration and remittances in Moldova: Is the boom over?: Trends and preliminary findings from the IOM-CBSAXA panel household survey 2006- 2008," Open Access Publications from Kiel Institute for the World Economy, Kiel Institute for the World Economy (IfW) 32525, Kiel Institute for the World Economy (IfW).

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