Determinants of Workers' Remittances: Evidence from the European Neighbouring Region
By Ioana Schiopu, N. Siegfried. Social Science Research Network, 2006
146 citations recorded by the source corpus.
Workers’ remittances have become the second largest source of net financial flows to developing countries. However, the main motives for sending remittances remain controversial. This paper examines the importance of altruistic versus investment motives using a new panel data set of bilateral flows from 21 Western European to 7 EU neighbouring countries. We find that altruism is important for remitting, as the GDP differential between sending and receiving countries is positively correlated with the average remittance per migrant. By contrast, interest rate differentials are insignificant, suggesting a weak investment motive. Finally, migrants’ skills raise remittances, while a large informal economy in the sending country depresses official remittance flows. JEL Classification: D13, D64, F22, F24, O15
Subfields: Demography, Economics and Econometrics, Sociology and Political Science
View Paper: https://www.semanticscholar.org/paper/3dc2398bc4616efee5cbf493d044ae28383d3559
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Demography
In Economics and Econometrics
- Jeffrey A. Frankel
- M. Goldstein
- Lutz Kilian
- Donghyeon Kim
- Alvaro Cuervo‐Cazurra
- Xiaoqing Zhou
- Jesse Schreger
- Serena Ng
In Sociology and Political Science
Citations in the corpus
- Fear, Unemployment and Migration (2009, unknown): “Interestingly, Schiopu and Siegfried (2006) found that the difference in GDP between the host and home countries increases the size of remittances.”
- The Impact of the Recent Migration from Eastern Europe on the UK Economy (2007, unknown): “The correlation is slightly weaker with the unemployment rate, but especially low with the employment rate.7 Interestingly, Schiopu and Siegfried (2006) found that the difference in GDP between the host and home countries increases the size of remittances.”
- Are Bilateral Remittances Countercyclical? (2011, background): “Schiopu and Siegfried (2006) also created a data set on bilateral remittances between a subset of European Union countries and neighbors.”