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Does Trust in Home Countries Matter for Formal Remittances?

Author

Listed:
  • Kamal Kasmaoui

    (IRMAPE - Institut de Recherche en Management et Pays Emergents - ESC Pau)

  • Farid Makhlouf

    (IRMAPE - Institut de Recherche en Management et Pays Emergents - ESC Pau)

  • Youssef Errami

    (IRMAPE - Institut de Recherche en Management et Pays Emergents - ESC Pau)

Abstract

This note studies the empirical relationship between trust and remittances. Using historical data from the 2010-2014 wave of World Values Survey (WVS) for interpersonal trust and World Bank for remittances. Results underline the substitution role played by interpersonal trust with remittances. Migrants send fewer of formal remittances when the rate of interpersonal trust in the country of origin is high.

Suggested Citation

  • Kamal Kasmaoui & Farid Makhlouf & Youssef Errami, 2020. "Does Trust in Home Countries Matter for Formal Remittances?," Working Papers hal-02886563, HAL.
  • Handle: RePEc:hal:wpaper:hal-02886563
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-02886563
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    References listed on IDEAS

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    1. Farid Makhlouf & Kamal Kasmaoui & Johanna Edelbloude, 2019. "Voting With The Wallet: The Response of Remittances to Political Systems," Economics Bulletin, AccessEcon, vol. 39(2), pages 1639-1650.
    2. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1251-1288.
    3. Kamal Kasmaoui & Mazhar Mughal & Jamal Bouoiyour, 2018. "Does Trust Influence Economic Growth? Evidence from the Arab World," Economics Bulletin, AccessEcon, vol. 38(2), pages 880-891.
    4. Alesina, Alberto & La Ferrara, Eliana, 2002. "Who trusts others?," Journal of Public Economics, Elsevier, vol. 85(2), pages 207-234, August.
    5. Edelbloude, Johanna & Fontan Sers, Charlotte & Makhlouf, Farid, 2017. "Do remittances respond to revolutions? The Evidence from Tunisia," Research in International Business and Finance, Elsevier, vol. 42(C), pages 94-101.
    6. Abdih, Yasser & Chami, Ralph & Dagher, Jihad & Montiel, Peter, 2012. "Remittances and Institutions: Are Remittances a Curse?," World Development, Elsevier, vol. 40(4), pages 657-666.
    7. Berdiev, Aziz N. & Kim, Yoonbai & Chang, Chun-Ping, 2013. "Remittances and corruption," Economics Letters, Elsevier, vol. 118(1), pages 182-185.
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    Keywords

    Remittances; Institutions; Social Capital; Interpersonal Trust;

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