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The effect of remittances on emigration intentions in Egypt, Morocco, and Turkey.

Are remittances determined by altruism or enlightened self-interest, and do they trigger additional migration? In this paper these two questions are examined empirically in relation to data from Egypt, Turkey, and Morocco for households with family members living abroad. It is shown, firstly, that one cannot argue exclusively either for altruism or self-interest as motives, since for each country the data tell a different story and both motives can be identified as driving forces behind remittance behaviour. The general conclusion of this study is that the family ties and the net earnings potential of migrants have stronger effects on the flow of remittances than the net earnings potential of the households in the country of origin. Secondly, because the receipt of remittances has a positive effect on the emigration intentions of household members still living in the country of origin, the receipt of remittances may contribute to new flows of migration, particularly in the case of Morocco.

Altruism↗

Workers remittances and the real exchange rate: a quantitative framework.

"Workers' remittances represent a sizeable component of international trade flows in goods and services. The paper tries to assess to what extent workers remittances are responsive to key macroeconomic variables.... Econometric estimation of a remittance equation for a sample of five Mediterranean countries indicates that the real exchange rate is indeed a significant determinant of remittances."

Commerce↗

Are migrant minorities strategically self-selected?

"In this paper we focus on the possibility of migrants' self-selection through strategic remittances. We argue that migrants of a specific community might be pooled with migrants from other ethnic minorities on the labor market of the foreign host country and that this could reduce the occurrence of strategic remittances. In a simple model with two types of workers, skilled and unskilled, facing two possible actions, to migrate or not to migrate, we derive the theoretical conditions under which strategic transfers are still operating when pooling among communities is introduced."

Culture↗

International migration and remittances to a Lebanese village.

"A number of hypotheses concerning remittances from foreign emigrants are developed and tested using questionnaire survey data from Lala, a Lebanese village. According to the theory, a rural family engages in an implicit insurance-type contract with the potential migrant because both are averse to risk.... Results from testing the hypotheses are somewhat consistent with the proposition that, after a period of adjustment, migrants do begin to remit, thereby providing their families with an insurance against the uncertainties of life in the country of origin. However, the level of remittances does not appear to depend on the potential to inherit from a family's wealth. Moreover, families do not seem to invest in their migrants so as to improve their farm lands and to undertake risky agricultural techniques. The long-term remittance commitment of migrants to their residual families suggests that migrants' altruism may be a more significant motivating factor than self-interest." (SUMMARY IN FRE)

Asia↗

Refugee remittances: conceptual issues and the Cuban and Nicaraguan experiences.

"This article assesses the notion that the determinants of remittances generated by refugee flows, particularly from Communist-inspired systems, are different from those associated with labor migrations....These differences have a major bearing on how labor migrants and refugees perceive their relationship with countries of origin. The propensity of labor migrants to dissociate themselves from the home country is considerably less than among refugees whose perceptions are mediated by opposition to the ruling regime and other factors, such as political relations between refugee-sending and refugee-receiving countries and whether or not there has been a regime change or one is expected to occur. The conceptual issues elaborated here are based on the Cuban-American experience, but also reflect an assessment of Nicaraguan emigration during the 1980s."

Americas↗

Factors determining migrant remittances: the case of Greece.

"In this study we review the literature regarding the theory and the empirical evidence regarding migrants' remittance behavior, and we examine the flow and determinants of remittances from Greek migrants for the period 1961 to 1991. The main body of data is for remittances to Greece from Germany, but for some years data are available for remittances from Belgium and Sweden as well. The objective of this study is to test the significance of certain factors in terms of their effects on remittances to Greece. These factors are the migrant's income, the migrant's family income, the rate of unemployment, the rate of interest, the exchange rate, and the rate of inflation. The study attempts to see if these factors have had any effect on the volume of remittances. It also attempts to see if there are any structural changes during this period that affect migrants' propensity to remit."

Belgium↗