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Remittances in the Republic of Georgia: Correlates, Economic Impact, and Social Capital Formation

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  • Theodore Gerber
  • Karine Torosyan

Abstract

The economic impact of remittances on migrant-sending countries has been a subject of debate in the scholarly literature on migration. We consider the topic using a household-level approach. We use a new survey, “Georgia on the Move,” to examine migrant-level, household-level, and contextual variables associated with the probability that a household in the Republic of Georgia receives remittances. We then apply propensity score matching to estimate how remittances affect particular types of household expenditures, savings, labor supply, health, and other measures of well-being. Separate analysis of the subsample of households with a migrant currently abroad distinguishes the effects of remittances from the effects of migration as such. In Georgia, remittances improve household economic well-being without, for the most part, producing the negative consequences often suggested in the literature. We find evidence for an important aspect that has not been widely discussed in prior studies: remittances foster the formation of social capital by increasing the amount of money that households give as gifts to other households. Copyright Population Association of America 2013

Suggested Citation

  • Theodore Gerber & Karine Torosyan, 2013. "Remittances in the Republic of Georgia: Correlates, Economic Impact, and Social Capital Formation," Demography, Springer;Population Association of America (PAA), vol. 50(4), pages 1279-1301, August.
    • Handle: RePEc:spr:demogr:v:50:y:2013:i:4:p:1279-1301
    DOI: 10.1007/s13524-013-0195-3
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    2. Md Shahadath Hossain & Adesola Sunmoni, "undated". "Do Remittances Influence Household Investment Decisions? Evidence from Sub-Saharan Africa," Economics Discussion Papers em-dp2021-04, Department of Economics, University of Reading.
    3. Gevorkyan, Aleksandr V., 2015. "The legends of the Caucasus: Economic transformation of Armenia and Georgia," International Business Review, Elsevier, vol. 24(6), pages 1009-1024.
    4. Torosyan, Karine & Pignatti, Norberto & Obrizan, Maksym, 2018. "Job market outcomes for IDPs: The case of Georgia," Journal of Comparative Economics, Elsevier, vol. 46(3), pages 800-820.
    5. Victor Agadjanian & Evgenia Gorina, 2019. "Economic Swings, Political Instability and Migration in Kyrgyzstan," European Journal of Population, Springer;European Association for Population Studies, vol. 35(2), pages 285-304, May.
    6. Yi, Fujin & Liu, Chang & Xu, Zhigang, 2019. "Identifying the effects of migration on parental health: Evidence from left-behind elders in China," China Economic Review, Elsevier, vol. 54(C), pages 218-236.
    7. Karine Torosyan & Theodore P. Gerber & Pilar Goñalons-Pons, 2016. "Migration, Household Tasks, and Gender: Evidence from the Republic of Georgia," International Migration Review, Wiley Blackwell, vol. 50(2), pages 445-474, June.
    8. Cebotari, Victor & Siegel, Melissa & Mazzucato, Valentina, 2016. "Migration and the education of children who stay behind in Moldova and Georgia," International Journal of Educational Development, Elsevier, vol. 51(C), pages 96-107.
    9. George Berulava, 2019. "Migration and labor supply in Georgia: an empirical study," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 9(3), pages 395-419, September.
    10. Mao-Mei Liu & Mathew J. Creighton & Fernando Riosmena & Pau Baizan, 2016. "Prospects for the comparative study of international migration using quasi-longitudinal micro-data," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 35(26), pages 745-782.

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