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Remittances in the Republic of Georgia: Correlates, Economic Impact, and Social Capital Formation

Listed author(s):
  • Theodore Gerber

    ()

  • Karine Torosyan

    ()

The economic impact of remittances on migrant-sending countries has been a subject of debate in the scholarly literature on migration. We consider the topic using a household-level approach. We use a new survey, “Georgia on the Move,” to examine migrant-level, household-level, and contextual variables associated with the probability that a household in the Republic of Georgia receives remittances. We then apply propensity score matching to estimate how remittances affect particular types of household expenditures, savings, labor supply, health, and other measures of well-being. Separate analysis of the subsample of households with a migrant currently abroad distinguishes the effects of remittances from the effects of migration as such. In Georgia, remittances improve household economic well-being without, for the most part, producing the negative consequences often suggested in the literature. We find evidence for an important aspect that has not been widely discussed in prior studies: remittances foster the formation of social capital by increasing the amount of money that households give as gifts to other households. Copyright Population Association of America 2013

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File URL: http://hdl.handle.net/10.1007/s13524-013-0195-3
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Article provided by Springer & Population Association of America (PAA) in its journal Demography.

Volume (Year): 50 (2013)
Issue (Month): 4 (August)
Pages: 1279-1301

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Handle: RePEc:spr:demogr:v:50:y:2013:i:4:p:1279-1301
DOI: 10.1007/s13524-013-0195-3
Contact details of provider: Web page: http://www.springer.com

Web page: http://www.populationassociation.org/

Order Information: Web: http://www.springer.com/economics/journal/13524

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  1. J. Edward Taylor & George Dyer, 2009. "Migration and the Sending Economy: A Disaggregated Rural Economy-Wide Analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 45(6), pages 966-989.
  2. Filiz Garip, 2008. "Social capital and migration: How do similar resources lead to divergent outcomes?," Demography, Springer;Population Association of America (PAA), vol. 45(3), pages 591-617, August.
  3. de la Briere, Benedicte & Sadoulet, Elisabeth & de Janvry, Alain & Lambert, Sylvie, 2002. "The roles of destination, gender, and household composition in explaining remittances: an analysis for the Dominican Sierra," Journal of Development Economics, Elsevier, vol. 68(2), pages 309-328, August.
  4. Borraz Fernando, 2005. "Assessing the Impact of Remittances on Schooling: the Mexican Experience," Global Economy Journal, De Gruyter, vol. 5(1), pages 1-32, April.
  5. Ali Mansoor & Bryce Quillin, 2007. "Migration and Remittances : Eastern Europe and the Former Soviet Union," World Bank Publications, The World Bank, number 6920, December.
  6. Stark, Oded & Taylor, J Edward & Yitzhaki, Shlomo, 1986. "Remittances and Inequality," Economic Journal, Royal Economic Society, vol. 96(383), pages 722-740, September.
  7. Catalina Amuedo-Dorantes & Susan Pozo, 2011. "New evidence on the role of remittances on healthcare expenditures by Mexican households," Review of Economics of the Household, Springer, vol. 9(1), pages 69-98, March.
  8. Stark, Oded & Bloom, David E, 1985. "The New Economics of Labor Migration," American Economic Review, American Economic Association, vol. 75(2), pages 173-178, May.
  9. Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
  10. Catalina Amuedo-Dorantes & Susan Pozo, 2011. "Remittances and Income Smoothing," American Economic Review, American Economic Association, vol. 101(3), pages 582-587, May.
  11. Moshe Semyonov & Anastasia Gorodzeisky, 2008. "Labor Migration, Remittances and Economic Well-being of Households in the Philippines," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 27(5), pages 619-637, October.
  12. Catalina Amuedo-Dorantes & Susan Pozo, 2006. "Migration, Remittances, and Male and Female Employment Patterns," American Economic Review, American Economic Association, vol. 96(2), pages 222-226, May.
  13. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-918, October.
  14. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
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