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An Empirical Analysis of the Time Pattern of Remittances and Tongan Migrants in New Zealand

Author

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  • Rukmani Gounder

    (School of Economics and Finance, Massey University)

Abstract

Altruistic motivation of sending remittances is a decentralised decision of the migrants. A phenomenon known in the literature as remittances decay hypothesis suggests that the pattern of remittances follows an inverted U shape. We examine whether remittances have declined based on the length of absence of Tongan migrants in New Zealand (NZ). Results from a survey analysis for 309 households indicate that at the early stages of migration remittances increase and it declines over the length of stay in NZ. The time period at which remittances reach the maximum point after which it starts to decline is about 17 years.

Suggested Citation

  • Rukmani Gounder, 2018. "An Empirical Analysis of the Time Pattern of Remittances and Tongan Migrants in New Zealand," Discussion Papers 1801, School of Economics and Finance, Massey University, New Zealand.
    • Handle: RePEc:mas:dpaper:1801
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    File URL: https://econfin.massey.ac.nz/school/publications/discuss/2018/DP1801.pdf
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    References listed on IDEAS

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    7. C. Kenrick Hunte, 2004. "Workers' Remittances, Remittance Decay and Financial Deepening in Developing Countries," The American Economist, Sage Publications, vol. 48(2), pages 82-94, October.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Microeconomic Behaviour; Remittances; Decay Hypothesis; Migration; Tonga;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O56 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Oceania

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