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Do macroeconomic fluctuations at destination matter in determining migrants’ return decisions?

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  • Tiwari, Smriti

Abstract

Although a significant portion of migration is temporary, comprehension of factors at destination that can shorten or extend migrants’ stays abroad is still limited. One such unexplored factor is the macroeconomic fluctuation at the destination. Are migrants’ return functions of macroeconomic fluctuations at the destination countries? The question is explored empirically using the variation in Gross Domestic Product per capita growth rates between 2000 and 2009 in the multitude of destinations that Nepali migrants work. Return of Nepali migrants increases as the economy at the destination expands relative to that at home. Additionally, the magnitude and timing of the response vary respectively across foreign earning distribution and contexts.

Suggested Citation

  • Tiwari, Smriti, 2021. "Do macroeconomic fluctuations at destination matter in determining migrants’ return decisions?," World Development, Elsevier, vol. 148(C).
  • Handle: RePEc:eee:wdevel:v:148:y:2021:i:c:s0305750x21002771
    DOI: 10.1016/j.worlddev.2021.105662
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