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Does the dual-citizenship recognition determine the level and the utilization of international remittances? Cross-Country Evidence


  • Christian EBEKE



This paper shows that countries which allow a dual citizenship status for their international migrants receive on average more remittances than others. Using a cross-section of 104 developing countries with data averaged over the period 2000-2008, I distinguish between the direct effect of the dual citizenship status (incentive to remit more) and an indirect effect which passes through migration incentives. Results indicate that the direct effect of the recognition of the dual-citizenship is higher. Finally, the paper shows that remittance inflows are more likely to foster private investment in receiving countries which recognize a dual citizenship status for their migrants. These results are robust to alternative uses of datasets on dual-citizenship codification and to the instrumentation of remittances in the private investment model.

Suggested Citation

  • Christian EBEKE, 2011. "Does the dual-citizenship recognition determine the level and the utilization of international remittances? Cross-Country Evidence," Working Papers 201102, CERDI.
  • Handle: RePEc:cdi:wpaper:1234

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    References listed on IDEAS

    1. Amuedo-Dorantes, Catalina & Pozo, Susan, 2004. "Workers' Remittances and the Real Exchange Rate: A Paradox of Gifts," World Development, Elsevier, vol. 32(8), pages 1407-1417, August.
    2. Adams Jr., Richard H., 2009. "The Determinants of International Remittances in Developing Countries," World Development, Elsevier, vol. 37(1), pages 93-103, January.
    3. David Antonio C., 2011. "How do International Financial Flows to Developing Countries Respond to Natural Disasters?," Global Economy Journal, De Gruyter, vol. 11(4), pages 1-38, December.
    4. Giuliano, Paola & Ruiz-Arranz, Marta, 2009. "Remittances, financial development, and growth," Journal of Development Economics, Elsevier, vol. 90(1), pages 144-152, September.
    5. Adams, Richard Jr. & Page, John, 2005. "Do international migration and remittances reduce poverty in developing countries?," World Development, Elsevier, vol. 33(10), pages 1645-1669, October.
    6. Lueth Erik & Ruiz-Arranz Marta, 2008. "Determinants of Bilateral Remittance Flows," The B.E. Journal of Macroeconomics, De Gruyter, vol. 8(1), pages 1-23, October.
    7. Dalia S Hakura & Ralph Chami & Peter J Montiel, 2009. "Remittances; An Automatic Output Stabilizer?," IMF Working Papers 09/91, International Monetary Fund.
    8. Freund, Caroline & Spatafora, Nikola, 2008. "Remittances, transaction costs, and informality," Journal of Development Economics, Elsevier, vol. 86(2), pages 356-366, June.
    9. Luis Servén, 2003. "Real-Exchange-Rate Uncertainty and Private Investment in LDCS," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 212-218, February.
    10. Pagan, Adrian, 1984. "Econometric Issues in the Analysis of Regressions with Generated Regressors," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(1), pages 221-247, February.
    11. Luis Servén, 2003. "ERRATUM: Real-Exchange-Rate Uncertainty and Private Investment in LDCs," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 492-492, May.
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    Cited by:

    1. Oloufade, Djoulassi K. & Pongou, Roland, 2012. "Dual Citizenship Institution: A Pareto Improvement?," MPRA Paper 40705, University Library of Munich, Germany, revised Aug 2012.

    More about this item


    Dual-citizenship; Remittances; Investment; Developing countries;

    JEL classification:

    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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