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The decision to remit is a matter of interpersonal trust

Author

Listed:
  • Kamal Kasmaoui

    (ESC Pau Business School)

  • Farid Makhlouf

    (ESC Pau Business School)

  • Refk Selmi

    (ESC Pau Business School)

Abstract

This article seeks to assess the role of the level of interpersonal trust in a country in the remittance landscape. Using historical data from the 2010-2014 wave of the World Value Survey (WVS) for interpersonal trust, our findings underline the substitution role played by interpersonal trust with remittances. More accurately, remittances tend to drop when the rate of interpersonal trust in the country of origin is high. Overall, a rise in trust is likely to underpin social cohesion, limiting therefore the need for remittances. These results are still fairly solid and unambiguous after controlling for confounding factors and possible reverse causality.

Suggested Citation

  • Kamal Kasmaoui & Farid Makhlouf & Refk Selmi, 2023. "The decision to remit is a matter of interpersonal trust," Economics Bulletin, AccessEcon, vol. 43(2), pages 733-747.
    • Handle: RePEc:ebl:ecbull:eb-23-00061
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    File URL: http://www.accessecon.com/Pubs/EB/2023/Volume43/EB-23-V43-I2-P60.pdf
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    More about this item

    Keywords

    Interpersonal Trust; Remittances; Social Capital.;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Z0 - Other Special Topics - - General

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