Motives for remitting from Germany to Kosovo
(...) The analyses of the motives for remitting in this research are based on an empirical quantitative dataset collected in 2009/2010. This dataset contains information on 225 Kosovo-Albanian migrants living in Germany and their corresponding rural origin households in Kosovo. This study design is innovative and exceptional for two reasons. First, because usually only one side of the remitting dyad is included in the analysis, i.e. the remitting migrant in the host country or the receiving household at the origin. Second, a new methodology is introduced in the analysis of motives for remitting. It is argued that the common, socio-economic perspective does not suffice to explain the motives for remitting. For this reason, the analysis starts with a common approach for the identification of determinants of remittances using Ordinary Least Squares (OLS). The results are then compared with an analysis based on the Theory of Planned Behaviour (TPB) applied in a Structural Equation Model (SEM). The TPB, borrowed from social psychology, is employed for the first time in this field of research. It is chosen with the purpose of widening the perspective on the motives of remitting through the representation of the inherent cognitive processes that underpin the decision-making process about remitting. The application of the TPB is based on three core constructs: the attitude towards remitting, the perceived norms surrounding remitting, and the perceived control over remitting. It is assumed that these three constructs shape the intention to remit. Additionally, socio-economic determinants, which have shown significance in the common approach, are included. The results of the OLS analysis generally comply with earlier empirical findings. The variables with significant impact on remittances can be split into three groups: (1) the closeness of the relation between the migrant and the origin household; (2) the financial capacity to remit of the migrant; and (3) the need for support by the origin household. It can be confirmed that the closer the relation between the migrant and the relatives at the origin, the better the financial endowment of the migrant; further, the more severe the need for financial support by the origin household is, the higher are the remittances. The results of the TPB approach indicate that the socio-economic determinants contribute to the explanation of the intention to remit only to a small extent. The main impact on the intention to remit stems from the attitude of the migrant towards remitting and the perceived norms on remitting. Consequently, if the migrant has a favourable opinion about remitting and feels that s/he is expected to remit, the intention to remit is stronger.
|This book is provided by Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO) in its series Studies on the Agricultural and Food Sector in Central and Eastern Europe with number 69 and published in 2012.|
|Contact details of provider:|| Postal: Theodor-Lieser-Strasse 2, 06120 Halle(Saale)|
Phone: (+49) (0) 345 / 29 28 0
Fax: (+49) (0) 345 / 29 28 199
Web page: http://www.iamo.de/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dilip Ratha & Sanket Mohapatra & Ani Silwal, 2009. "Outlook for Remittance Flows 2009-2011 : Remittances Expected to Fall by 7-10 Percent in 2009," World Bank Other Operational Studies 10975, The World Bank.
- P. M. Bentler & Chih-Ping Chou, 1987. "Practical Issues in Structural Modeling," Sociological Methods & Research, , vol. 16(1), pages 78-117, August.
- Ringle, Christian M. & Götz, Oliver & Wetzels, Martin & Wilson, Bradley, 2009.
"On the Use of Formative Measurement Specifications in Structural Equation Modeling: A Monte Carlo Simulation Study to Compare Covariance-Based and Partial Least Squares Model Estimation Methodologies,"
15390, University Library of Munich, Germany.
- Ringle Christian M. & Götz Oliver & Wetzels Martin & Wilson Bradley, 2009. "On the Use of Formative Measurement Specifications in Structural Equation Modeling: A Monte Carlo Simulation Study to Compare Covariance-Based and Partial Least Squares Model Estimation Methodologies," Research Memorandum 014, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Poirine, Bernard, 1997. "A theory of remittances as an implicit family loan arrangement," World Development, Elsevier, vol. 25(4), pages 589-611, January.
- Elke Holst & Mechthild Schrooten, 2006.
"Migration and Money - What Determines Remittances?: Evidence from Germany,"
Discussion Papers of DIW Berlin
566, DIW Berlin, German Institute for Economic Research.
- Holst, Elke & Schrooten, Mechthild, 2006. "Migration and Money: What determines Remittances? Evidence from Germany," Discussion Paper Series a477, Institute of Economic Research, Hitotsubashi University.
- Ellis, Frank, 2000. "Rural Livelihoods and Diversity in Developing Countries," OUP Catalogue, Oxford University Press, number 9780198296966, May.
- Bettin, Giulia & Lucchetti, Riccardo & Zazzaro, Alberto, 2009.
"Income, consumption and remittances: Evidence from immigrants to Australia,"
HWWI Research Papers
3-21, Hamburg Institute of International Economics (HWWI).
- Giulia Bettin & Riccardo Lucchetti & Alberto Zazzaro, 2009. "Income, consumption and remittances: evidence from immigrants to Australia," Mo.Fi.R. Working Papers 34, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
- Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June.
- Gertrud Schrieder & Beatrice Knerr, 2000. "Labour Migration as a Social Security Mechanism for Smallholder Households in Sub-Saharan Africa: The Case of Cameroon," Oxford Development Studies, Taylor & Francis Journals, vol. 28(2), pages 223-236.
- Ralph Rotte & Michael Vogler, 2000.
"The effects of development on migration: Theoretical issues and new empirical evidence,"
Journal of Population Economics,
Springer, vol. 13(3), pages 485-508.
- Rotte, Ralph & Vogler, Michael, 1999. "The Effects of Development on Migration: Theoretical Issues and New Empirical Evidence," IZA Discussion Papers 46, Institute for the Study of Labor (IZA).
- Gero Carletto & Benjamin Davis & Marco Stampini & Stefano Trento & Alberto Zezza, 2004. "Internal Mobility and International Migration in Albania," Working Papers 04-13, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
- Stark, Oded & Taylor, J. Edward, 1990.
"Migration Incentives, Migration Types: The Role Of Relative Deprivation,"
225854, University of California, Davis, Department of Agricultural and Resource Economics.
- Stark, Oded & Taylor, J Edward, 1991. "Migration Incentives, Migration Types: The Role of Relative Deprivation," Economic Journal, Royal Economic Society, vol. 101(408), pages 1163-78, September.
- Hoddinott, John, 1994. "A Model of Migration and Remittances Applied to Western Kenya," Oxford Economic Papers, Oxford University Press, vol. 46(3), pages 459-76, July.
- Katz, Eliakim & Stark, Oded, 1986. "Labor Migration and Risk Aversion in Less Developed Countries," Journal of Labor Economics, University of Chicago Press, vol. 4(1), pages 134-49, January.
- Banerjee, Biswajit, 1984. "The probability, size and uses of remittances from urban to rural areas in India," Journal of Development Economics, Elsevier, vol. 16(3), pages 293-311, December.
- Rapoport, Hillel & Docquier, Frederic, 2006.
"The Economics of Migrants' Remittances,"
Handbook on the Economics of Giving, Reciprocity and Altruism,
- Meyer, Wiebke & Möllers, Judith & Buchenrieder, Gertrud, 2008.
"Does non-farm income diversivication in Northern Albania offer an escape from rural poverty?
[Stellt außerlandwirtschaftliche Einkommensdiversifizierung einen Ausweg aus der Armut für landwirtschaf," IAMO Discussion Papers 119, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
- 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 901-18, October.
- Faini, Riccardo & Venturini, Alessandra, 1993. "Trade, aid and migrations: Some basic policy issues," European Economic Review, Elsevier, vol. 37(2-3), pages 435-442, April.
- Elke Holst & Mechthild Schrooten, 2006. "Sending Money Abroad – What Determines Migrants’ Remittances?," Discussion Papers 009, Europa-Universität Flensburg, International Institute of Management.
- Dustmann, Christian & Mestres, Josep, 2010.
"Remittances and temporary migration,"
Journal of Development Economics,
Elsevier, vol. 92(1), pages 62-70, May.
- Stark, Oded & Bloom, David E, 1985. "The New Economics of Labor Migration," American Economic Review, American Economic Association, vol. 75(2), pages 173-78, May.
- Laetitia Duval & François-Charles Wolff, 2009.
"Remittances matter: Longitudinal evidence from Albania,"
- Laetitia Duval & Francois-Charles Wolff, 2010. "Remittances matter: longitudinal evidence from Albania," Post-Communist Economies, Taylor & Francis Journals, vol. 22(1), pages 73-97.
- Stark, Oded & Levhari, David, 1982. "On Migration and Risk in LDCs," Economic Development and Cultural Change, University of Chicago Press, vol. 31(1), pages 191-96, October.
- Merkle, Lucie & Zimmermann, Klaus F., 1992. "Savings, remittances, and return migration," Economics Letters, Elsevier, vol. 38(1), pages 77-81, January.
- Hall, Robert E, 1978. "Stochastic Implications of the Life Cycle-Permanent Income Hypothesis: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 86(6), pages 971-87, December.
- 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.
- 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.
- Telser, L G, 1980. "A Theory of Self-enforcing Agreements," The Journal of Business, University of Chicago Press, vol. 53(1), pages 27-44, January.
- Jørgen Carling, 2008. "The determinants of migrant remittances," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 582-599, Autumn.
- Flore Gubert, 2002. "Do Migrants Insure Those who Stay Behind? Evidence from the Kayes Area (Western Mali)," Oxford Development Studies, Taylor & Francis Journals, vol. 30(3), pages 267-287.
- Johnson, George E & Whitelaw, W E, 1974. " Urban-Rural Income Transfers in Kenya: An Estimated-Remittances Function," Economic Development and Cultural Change, University of Chicago Press, vol. 22(3), pages 473-79, April.
- Osili, Una Okonkwo, 2007. "Remittances and savings from international migration: Theory and evidence using a matched sample," Journal of Development Economics, Elsevier, vol. 83(2), pages 446-465, July.
- Edward Funkhouser, 2009. "The Choice of Migration Destination: A Longitudinal Approach using Pre-Migration Outcomes," Review of Development Economics, Wiley Blackwell, vol. 13(4), pages 626-640, November.
- World Bank, 2008. "The Migration and Remittances Factbook 2008," World Bank Publications, The World Bank, number 6383, March.
- Lipton, Michael, 1980. "Migration from rural areas of poor countries: The impact on rural productivity and income distribution," World Development, Elsevier, vol. 8(1), pages 1-24, January.
- Funkhouser, Edward, 1995. "Remittances from International Migration: A Comparison of El Salvador and Nicaragua," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 137-46, February.
- Ilahi, Nadeem & Jafarey, Saqib, 1999. "Guestworker migration, remittances and the extended family: evidence from Pakistan," Journal of Development Economics, Elsevier, vol. 58(2), pages 485-512, April.
- Lee, Sang-Hyop & Sukrakarn, Nopparat & Choi, Jin-Young, 2011. "Repeat migration and remittances: Evidence from Thai migrant workers," Journal of Asian Economics, Elsevier, vol. 22(2), pages 142-151, April.
When requesting a correction, please mention this item's handle: RePEc:zbw:iamost:69. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.