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Remittances and Migration Intentions of the Left-Behind

Author

Listed:
  • Piracha, Matloob

    (University of Kent)

  • Saraogi, Amrita

    (Bunge Ltd)

Abstract

Migration and the consequent flow of remittances are like a double-edged sword; while keeping many out of poverty, they can also result in further brain drain and demographic imbalance for the country. Using a large household survey data from Moldova and employing simultaneous equations model we show that there exists a dual causality between receipt of remittances by non-migrants and their migration intentions. Moreover, we add a novel element to the empirical literature by being the first to be able to specify the mechanism behind the link between remittances and migration. We find evidence that remittances not only relieve credit constraints in the home country but also act as a signalling device of success in the host country. These results provide a fresh outlook on the role of remittances in shaping migration flows in the migrant sending countries.

Suggested Citation

  • Piracha, Matloob & Saraogi, Amrita, 2013. "Remittances and Migration Intentions of the Left-Behind," IZA Discussion Papers 7779, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7779
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    References listed on IDEAS

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    Cited by:

    1. Azizbek Tokhirov & Jaromír Harmáček & Miroslav Syrovátka, . "Remittances and Inequality: The Post-Communist Region," Prague Economic Papers, Prague University of Economics and Business, vol. 0.
    2. Aleksandr Grigoryan & Knar Khachatryan, 2018. "Remittances and Emigration Intentions: Evidence from Armenia," CERGE-EI Working Papers wp626, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    3. Azizbek Tokhirov & Jaromír Harmáček & Miroslav Syrovátka, 2021. "Remittances and Inequality: The Post-Communist Region," Prague Economic Papers, Prague University of Economics and Business, vol. 2021(4), pages 426-448.
    4. Anna Katharina Raggl, 2019. "Migration intentions in CESEE: sociodemographic profiles of prospective emigrants and their motives for moving," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q1/19, pages 49-67.
    5. Marta Gwiaździńska-Goraj & Katarzyna Pawlewicz & Aleksandra Jezierska-Thöle, 2020. "Differences in the Quantitative Demographic Potential—A Comparative Study of Polish–German and Polish–Lithuanian Transborder Regions," Sustainability, MDPI, vol. 12(22), pages 1-27, November.

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    Keywords

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    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • J1 - Labor and Demographic Economics - - Demographic Economics

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