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Emigration, remittances and corruption experience of those staying behind

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  • ARTJOMS IVLEVS
  • ROSWITHA M. KING

Abstract

We examine the effects of emigration and remittances on the corruption experience of migrant household members staying in the countries of origin. We hypothesize that the effects of emigration on corruption can be both positive (via migrant value transfer) and negative (via misuse of monetary remittances). Using data from Gallup Balkan Monitor survey in instrumental variable analysis, we find that having relatives abroad reduces the probability of bribing public officials but receiving monetary remittances offsets this beneficial effect. We also find that migrant households, and especially remittance-recipient households, are more likely to be extortion targets for public officials. These findings support both the direct value transfer and the indirect monetary channels of influence.

Suggested Citation

  • Artjoms Ivlevs & Roswitha M. King, 2015. "Emigration, remittances and corruption experience of those staying behind," Working papers of the Department of Economics - University of Perugia (IT) 0008/2015, Università di Perugia, Dipartimento Economia.
    • Handle: RePEc:pia:papers:0008/2015
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    Cited by:

    1. Lisa Sofie Höckel & Manuel Santos Silva & Tobias Stöhr, 2018. "Can Parental Migration Reduce Petty Corruption in Education?," The World Bank Economic Review, World Bank, vol. 32(1), pages 109-126.
    2. Xiaoyang Li & John McHale & Xuan Zhou, 2017. "Does Brain Drain Lead to Institutional Gain?," The World Economy, Wiley Blackwell, vol. 40(7), pages 1454-1472, July.

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    More about this item

    Keywords

    emigration; corruption; institutions; diaspora externalities; Western Balkans;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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