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The Decision to Remit: Is it a Matter of Interpersonal Trust?

Author

Listed:
  • Kasmaoui Kamal

    (ESC PAU - Ecole Supérieure de Commerce, Pau Business School)

  • Makhlouf Farid

    (ESC PAU - Ecole Supérieure de Commerce, Pau Business School)

  • Refk Selmi

    (ESC PAU - Ecole Supérieure de Commerce, 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. Potential elements including human capital, cultural factors, the quality of institutions, the financial development and the inequality have been advanced to explain the obtained findings.

Suggested Citation

  • Kasmaoui Kamal & Makhlouf Farid & Refk Selmi, 2023. "The Decision to Remit: Is it a Matter of Interpersonal Trust?," Post-Print hal-04075078, HAL.
    • Handle: RePEc:hal:journl:hal-04075078
    Note: View the original document on HAL open archive server: https://hal.science/hal-04075078
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    References listed on IDEAS

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    JEL classification:

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

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