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Sharing Norm Pressures and Community Remittances: Evidence from a Natural Disaster in the Pacific Islands

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  • Richard P.C. Brown
  • Gareth Leeves
  • Prabha Prayaga

Abstract

Migrants are often subject to social pressures to remit beyond their own households, to share the benefits of migration with the wider community in their home country; these are 'community remittances'. We hypothesise that community sharing norm pressures are stronger in locations with more extensive home community networks. We also postulate that the responsiveness of remittances to sharing pressures is subject to diminishing returns, attributable to a donor fatigue effect. Using customised survey data from three Polynesian migrant groups in metropolitan and regional Australia, we estimate double-hurdle regression models of community remittances. To identify the effects of sharing norm pressures we exploit an exogenous (cyclone) shock to home country incomes affecting one sub-group. We find strong evidence in support of the postulated responsiveness of community remittances to location-related differences in sharing norm pressures, and the presence of a donor fatigue effect. The policy implications are discussed.

Suggested Citation

  • Richard P.C. Brown & Gareth Leeves & Prabha Prayaga, 2014. "Sharing Norm Pressures and Community Remittances: Evidence from a Natural Disaster in the Pacific Islands," Journal of Development Studies, Taylor & Francis Journals, vol. 50(3), pages 383-398, March.
    • Handle: RePEc:taf:jdevst:v:50:y:2014:i:3:p:383-398
    DOI: 10.1080/00220388.2013.858127
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    1. Giulia Bettin & Riccardo Lucchetti & Claudia Pigini, 2016. "State dependence and unobserved heterogeneity in a double hurdle model for remittances: evidence from immigrants to Germany," Mo.Fi.R. Working Papers 127, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    2. Giulia Bettin & Riccardo Lucchetti, 2016. "Steady streams and sudden bursts: persistence patterns in remittance decisions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 263-292, January.
    3. Ryota Nakatani, 2019. "A Possible Approach to Fiscal Rules in Small Islands — Incorporating Natural Disasters and Climate Change," IMF Working Papers 2019/186, International Monetary Fund.
    4. Ryota Nakatani, 2021. "Fiscal Rules for Natural Disaster- and Climate Change-Prone Small States," Sustainability, MDPI, vol. 13(6), pages 1-26, March.
    5. Catia Batista & Janis Umblijs, 2016. "Do migrants send remittances as a way of self-insurance?," Oxford Economic Papers, Oxford University Press, vol. 68(1), pages 108-130.
    6. Tisdell, Clem, 2014. "The MIRAB Model of Small Island Economies in the Pacific and their Security Issues: Revised Version," Social Economics, Policy and Development Working Papers 165087, University of Queensland, School of Economics.
    7. Tisdell, Clem, 2014. "The MIRAB Model of Small Island Economies in the Pacific and their Security Issues: A Draft," Social Economics, Policy and Development Working Papers 163698, University of Queensland, School of Economics.
    8. Yonas Alem & Lisa Andersson, 2019. "International Remittances and Private Interhousehold Transfers: Exploring the Links," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(4), pages 902-928, September.
    9. Richard P.C. Brown & Gareth Leeves & Nichola Kitson & Prabha Prayaga, 2015. "Give and Take or Give and Give: Charitable Giving in Migrant Households," Discussion Papers Series 547, School of Economics, University of Queensland, Australia.
    10. Richard Brown & Jørgen Carling & Sonja Fransen & Melissa Siegel, 2014. "Measuring remittances through surveys," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 31(41), pages 1243-1274.
    11. Bettin, Giulia & Lucchetti, Riccardo & Pigini, Claudia, 2018. "A dynamic double hurdle model for remittances: evidence from Germany," Economic Modelling, Elsevier, vol. 73(C), pages 365-377.

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