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Who remits and why? Evidence on internal migrant remittances from Vietnam and Thailand

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  • Sharma, Rasadhika
  • Grote, Ulrike

Abstract

The paper analyses determinants and motivations of internal migrant remittances based on a unique data set that combines a household survey from three provinces in Vietnam and Thailand with a migrant tracing survey that was conducted in Ho Chi Minh City and the Greater Bangkok area. Using the Heckman model, we find that human capital, stronger family ties and better living conditions positively influence the migrant’s decision to remit. In terms of the amount remitted, migrants engaged in the service sector remit lower shares of their income and remittances decrease as the household wealth increases. Furthermore, we explore the behavioral side of remittances by constructing proxy groups that represent each strand of migrant’s motivation for remitting. We examine the relationship of these proxy groups and remittances to conclude that exchange or loan repayment motive underpinned by altruism is the strongest motivation in our case.

Suggested Citation

  • Sharma, Rasadhika & Grote, Ulrike, 2018. "Who remits and why? Evidence on internal migrant remittances from Vietnam and Thailand," TVSEP Working Papers wp-009, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.
  • Handle: RePEc:tvs:wpaper:wp-009
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    References listed on IDEAS

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    1. Yoko Niimi & Thai Hung Pham & Barry Reilly, 2009. "Determinants of Remittances: Recent Evidence Using Data on Internal Migrants in Vietnam," Asian Economic Journal, East Asian Economic Association, vol. 23(1), pages 19-39, March.
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    Cited by:

    1. Sharma, Rasadhika & Grote, Ulrike, 2019. "Who is an internal migrant?," TVSEP Working Papers wp-013, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.
    2. Manh Hung Do & Trung Thanh Nguyen & Thanh-Tung Nguyen & Ulrike Grote, 2020. "Shocks and rural development policies: Any implications for migrants to return?," TVSEP Working Papers wp-018, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.

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    More about this item

    Keywords

    Remittances; Altruism; Self-interest; Heckman model; Thailand; Vietnam;
    All these keywords.

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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