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Equilibrium migration with invested remittances: The EECA evidence

Author

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  • Claire Naiditch

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - ULCO - Université du Littoral Côte d'Opale - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Radu Vranceanu

    (ESSEC Business School)

Abstract

This paper analyzes international migration when migrants invest part of their income in their country of origin. We show that a non-total migratory equilibrium exists. Exogenous shocks, such as an increase in migrant income, lead to an increase in optimal invested remittances per migrant, and a higher wage in the country of origin. Yet the net effect on the equilibrium number of migrants is positive. Hence, in equilibrium, emigrants' optimal invested remittances and number of migrants are positively related. We use data from twenty five countries in Eastern Europe and Central Asia in 2000 to test for this implication of our model. OLS and bootstrap estimates reveal a positive elasticity of the number of migrants with respect to estimated invested remittances per migrant in the range of [0.3; 0.7].
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Claire Naiditch & Radu Vranceanu, 2010. "Equilibrium migration with invested remittances: The EECA evidence," Post-Print halshs-01914454, HAL.
    • Handle: RePEc:hal:journl:halshs-01914454
    DOI: 10.1016/j.ejpoleco.2010.05.003
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    Cited by:

    1. Diego Alberto Sandoval Herrera & Mar�a Fernanda Reyes Roa, 2012. "�Por qu� los migrantes env�an remesas?: Repaso de las principales motivaciones microecon�micas," Borradores de Economia 10036, Banco de la Republica.
    2. Mohammad Salahuddin & Jeff Gow, 2015. "The relationship between economic growth and remittances in the presence of cross-sectional dependence," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(1), pages 207-221, January-M.
    3. Oluwasheyi S. Oladipo, 2020. "Migrant Workers' Remittances And Economic Growth: A Time Series Analysis," Journal of Developing Areas, Tennessee State University, College of Business, vol. 54(4), pages 75-88, October-D.

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