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Determinants of remittances : recent evidence using data on internal migrants in Vietnam

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  • Niimi, Yoko
  • Pham, Thai Hung
  • Reilly, Barry

Abstract

This paper examines the determinants of remittance behavior for Vietnam using data from the 2004 Vietnam Migration Survey on internal migrants. It considers how, among other things, the vulnerability of a migrant's life at the destination, their link to relatives back home, and the time spent at the destination affect remittances. The paper finds that migrants act as risk-averse economic agents and sendremittances back to the household of origin as part of an insurance exercise in the face of economic uncertainty. Remittances are also found to be driven by a migrant's labor market earnings level. The paper highlights the important role of remittances in providing an effective means of risk-coping and mutual support within the family.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4586.

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Date of creation: 01 Apr 2008
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Handle: RePEc:wbk:wbrwps:4586

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Keywords: Population Policies; Access to Finance; Gender and Development; Debt Markets; Remittances;

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References

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  1. Van der Walle, Dominique & Cratty, Dorothyjean, 2003. "Is the emerging nonfarm market economy the route out of poverty in Vietnam?," Policy Research Working Paper Series 2950, The World Bank.
  2. Gary S. Becker, 1974. "A Theory of Social Interactions," NBER Working Papers 0042, National Bureau of Economic Research, Inc.
  3. Loren Brandt & Dwayne Benjamin, 2002. "Agriculture and Income Distribution in Rural Vietnam under Economic Reforms: A Tale of Two Regions," William Davidson Institute Working Papers Series 519, William Davidson Institute at the University of Michigan.
  4. Binh Nguyen & James Albrecht & Susan Vroman & Daniel Westbrook, 2003. "A Quantile Regression Decomposition of Urban-Rural Inequality in Vietnam," Working Papers gueconwpa~03-03-31, Georgetown University, Department of Economics.
  5. 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.
  6. John Knight & Lina Song & Jia Huaibin, 1999. "Chinese rural migrants in urban enterprises: Three perspectives," The Journal of Development Studies, Taylor and Francis Journals, vol. 35(3), pages 73-104.
  7. Richard Smith & Richard Blundell, 1983. "An Exogeneity Test for the Simultaneous Equation Tobit Model With an Application to Labour Supply," Working Papers 546, Queen's University, Department of Economics.
  8. Qiming Liu & Barry Reilly, 2004. "Income transfers of Chinese rural migrants: some empirical evidence from Jinan," Applied Economics, Taylor and Francis Journals, vol. 36(12), pages 1295-1313.
  9. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May.
  10. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June.
  11. 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.
  12. Giorgio Secondi, 1997. "Private monetary transfers in rural china: Are families altruistic?," The Journal of Development Studies, Taylor and Francis Journals, vol. 33(4), pages 487-511.
  13. Agarwal, Reena & Horowitz, Andrew W., 2002. "Are International Remittances Altruism or Insurance? Evidence from Guyana Using Multiple-Migrant Households," World Development, Elsevier, vol. 30(11), pages 2033-2044, November.
  14. Dennis Ahlburg & Richard Brown, 1998. "Migrants' intentions to return home and capital transfers: A study of Tongans and Samoans in Australia," The Journal of Development Studies, Taylor and Francis Journals, vol. 35(2), pages 125-151.
  15. Catalina Amuedo-Dorantes & Susan Pozo, 2006. "Remittances as insurance: evidence from Mexican immigrants," Journal of Population Economics, Springer, vol. 19(2), pages 227-254, June.
  16. Brown, Richard P. C., 1997. "Estimating remittance functions for Pacific Island Migrants," World Development, Elsevier, vol. 25(4), pages 613-626, January.
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Citations

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Cited by:
  1. Florence Arestoff & Mélanie Kuhn & El Mouhoub Mouhoud, 2012. "Transferts de fonds des migrants en Afrique du Sud. Les conditions de départ du pays d'origine sont-elles déterminantes ?," Revue économique, Presses de Sciences-Po, vol. 63(3), pages 513-522.
  2. Yaw Nyarko and Kwabena Gyimah-Brempong, 2011. "Social Safety Nets: The Role of Education, Remittances and Migration," EUI-RSCAS Working Papers 26, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
  3. Hagen-Zanker, Jessica, 2010. "Modest expectations: Causes and effects of migration on migrant households in source countries," MPRA Paper 29507, University Library of Munich, Germany.
  4. Chang, Hongqin & Dong, Xiao-yuan & MacPhail, Fiona, 2011. "Labor Migration and Time Use Patterns of the Left-behind Children and Elderly in Rural China," World Development, Elsevier, vol. 39(12), pages 2199-2210.

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