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Migration and remittances : causes and linkages

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  • Niimi, Yoko
  • Ozden, Caglar

Abstract

The authors empirically examine the determinants of remittance flows at the cross-country level. They consider, among other things, the significance of the level of migration, the education level of migrants, and financial sector development in determining remittances. Given the potential endogeneity problems, the migration and financial development variables are instrumented in the estimation. They find that the migration level is the main driver of remittance flows, even after controlling for the endogeneity bias through instrumental variable estimation. The authors also find that the education level of migrants relative to the population in home countries, the size of the economy, and the level of economic development of recipient countries adversely affect remittance flows. While they find the effect of financial sector development to be positive, its significance is not strongly supported in their analysis.

Suggested Citation

  • Niimi, Yoko & Ozden, Caglar, 2006. "Migration and remittances : causes and linkages," Policy Research Working Paper Series 4087, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4087
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    References listed on IDEAS

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    Cited by:

    1. Ziesemer, Thomas H.W., 2010. "The impact of the credit crisis on poor developing countries: Growth, worker remittances, accumulation and migration," Economic Modelling, Elsevier, vol. 27(5), pages 1230-1245, September.
    2. Yousaf Zaman & Khair-Uz-Zaman & Shadiullah Khan, 2014. "Macro Level Determinants of Remittances to Pakistan," International Journal of Financial Economics, Research Academy of Social Sciences, vol. 2(3), pages 142-155.
    3. Sankar Mukhopadhyay & Miaomiao Zou, 2020. "Will Skill-Based Immigration Policies Lead to Lower Remittances? An Analysis of the Relations between Education, Sponsorship, and Remittances," Journal of Development Studies, Taylor & Francis Journals, vol. 56(3), pages 489-508, March.
    4. Tchantchane, A. & Rodrigues, G. & Fortes, P.C., 2013. "An Empirical Study on the importance of Remittance and Educational Expenditure on Growth: Case of the Philippines," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 13(1), pages 173-186.
    5. Bettin, Giulia & Lucchetti, Riccardo & Zazzaro, Alberto, 2012. "Financial development and remittances: Micro-econometric evidence," Economics Letters, Elsevier, vol. 115(2), pages 184-186.
    6. Adams Jr., Richard H., 2009. "The Determinants of International Remittances in Developing Countries," World Development, Elsevier, vol. 37(1), pages 93-103, January.
    7. Ziesemer, Thomas H.W., 2012. "Worker remittances, migration, accumulation and growth in poor developing countries: Survey and analysis of direct and indirect effects," Economic Modelling, Elsevier, vol. 29(2), pages 103-118.
    8. Sami Ben Mim & Fatma Mabrouk, 2011. "Remittances and economic growth: what channels of transmission? (In French)," Cahiers du GREThA (2007-2019) 2011-28, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    9. Deodat E. Adenutsi & Meshach J. Aziakpono & Matthew K. Ocran, 2011. "The Changing Impact Of Macroeconomic Environment On Remittance Inflows In Sub-Saharan Africa," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 3(2 (July)), pages 136-167.
    10. Giulia Bettin & Riccardo Lucchetti & Alberto Zazzaro, 2009. "Income, consumption and remittances: evidence from immigrants to Australia," Mo.Fi.R. Working Papers 34, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    11. Ravinder Rena, 2008. "Recent Trends in the World Economy: A Case Study of Africa," Journal of Global Economy, Research Centre for Social Sciences,Mumbai, India, vol. 4(2), pages 86-104, June.
    12. Adams, Richard H., Jr., 2008. "The demographic, economic and financial determinants of international remittances in developing countries," Policy Research Working Paper Series 4583, The World Bank.
    13. Bharati Basu & James T. Bang, 2013. "Insurance and remittances: New evidence from Latin American immigrants to the US," Migration Letters, Migration Letters, vol. 10(3), pages 383-398, September.
    14. Ahmed, Junaid & Martinez-Zarzoso, Inmaculada, 2014. "What drives bilateral remittances to Pakistan? A gravity model approach," University of Göttingen Working Papers in Economics 209, University of Goettingen, Department of Economics.
    15. Kim, Jounghyeon, 2021. "Financial development and remittances: The role of institutional quality in developing countries," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 386-407.
    16. Schellenberg, Grant & Houle, Rene, 2008. "Remittance Behaviours Among Recent Immigrants in Canada," Analytical Studies Branch Research Paper Series 2008312e, Statistics Canada, Analytical Studies Branch.
    17. World Bank, 2008. "Turkey - Country Economic Memorandum : Volume 2. Sustaining High Growth, Selected Issues," World Bank Publications - Reports 8017, The World Bank Group.
    18. Ziesemer Thomas H.W., 2009. "Worker Remittances and Growth: The Physical and Human Capital Channels," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 229(6), pages 743-773, December.
    19. Sule Akkoyunlu, 2010. "Are Turkish Migrants Altruistic?," KOF Working papers 10-246, KOF Swiss Economic Institute, ETH Zurich.
    20. Ibrahim Sirkeci & Jeffrey H. Cohen & Dilip Ratha, 2012. "Migration and Remittances during the Global Financial Crisis and Beyond," World Bank Publications - Books, The World Bank Group, number 13092, December.

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    Keywords

    Population Policies; Remittances; Economic Theory&Research; Banks&Banking Reform; Achieving Shared Growth;
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