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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 - Ecole Supérieure de Commerce, Pau Business School)

  • Farid Makhlouf

    (IRMAPE - Institut de Recherche en Management et Pays Emergents - ESC PAU - Ecole Supérieure de Commerce, Pau Business School)

  • Youssef Errami

    (IRMAPE - Institut de Recherche en Management et Pays Emergents - ESC PAU - Ecole Supérieure de Commerce, Pau Business School)

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.science/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.
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    4. Berdiev, Aziz N. & Kim, Yoonbai & Chang, Chun-Ping, 2013. "Remittances and corruption," Economics Letters, Elsevier, vol. 118(1), pages 182-185.
    5. Tertytchnaya, Katerina & De Vries, Catherine E. & Solaz, Hector & Doyle, David, 2018. "When the Money Stops: Fluctuations in Financial Remittances and Incumbent Approval in Central Eastern Europe, the Caucasus and Central Asia," American Political Science Review, Cambridge University Press, vol. 112(4), pages 758-774, November.
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    7. 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.
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