Are Remittances Conflict-Abating in Recipient Countries?
AbstractThis paper represents the first attempt to formalise the relationship between remittances inflow and social violence by developing a model which predicts that migrants’ remittances would lead to the reduction of social conflict in the recipient economy under the condition that remittances increase the average product of labour. Using homicides data as an indicator of social violence, we test our model’s prediction. Duly controlling for the endogeneity problem using appropriate instruments, we find that remittances tend to reduce social violence. We perform sensitivity analysis on remittances in the empirical model and find it robust with an unchanged negative sign.
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Bibliographic InfoPaper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 13/11.
Length: 22 pages
Date of creation: 16 Jul 2013
Date of revision:
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More information through EDIRC
remittances; international migration; social conflict; homicide; social violence; economic development;
Find related papers by JEL classification:
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- F24 - International Economics - - International Factor Movements and International Business - - - Remittances
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-20 (All new papers)
- NEP-DEV-2013-07-20 (Development)
- NEP-MIG-2013-07-20 (Economics of Human Migration)
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