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Motivations for Remittances: Evidence from Moldova

  • Matloob Piracha


  • Amrita Saraogi

This paper explores the factors that account for the receipt of remittances across households in Moldova who have migrant family members abroad. Unlike most of the existing literature, we approach our research question from the perspective of the recipient household and use it to interpret the determinants/motivations of remittances. Our results show that a combination of household and migrant characteristics and some community level variables are the key elements in explaining the remittance behaviour in Moldova. Drawing from these estimates, we conclude that altruism and investment (proxied by the level of economic development at the regional level) are the two main motives behind remittance flows to Moldova.

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Paper provided by School of Economics, University of Kent in its series Studies in Economics with number 1101.

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Date of creation: Feb 2011
Date of revision:
Handle: RePEc:ukc:ukcedp:1101
Contact details of provider: Postal: School of Economics, University of Kent, Canterbury, Kent, CT2 7NP
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  1. Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November.
  2. Catalina Amuedo-Dorantes & Susan Pozo, 2006. "Remittances as insurance: evidence from Mexican immigrants," Journal of Population Economics, Springer, vol. 19(2), pages 227-254, June.
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