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The Determinants of Remittances: Evidence from Moldova

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  • Matloob Piracha
  • Amrita Saraogi

Abstract

This article explores the factors that account for the receipt of remittances by households in Moldova that have members who have migrated abroad, mostly temporarily. We approach our research question from the perspective of the recipient household and use it to interpret the econometric findings on the determinants of remittances. Our results show that a combination of household and migrant characteristics and some community-level variables are the key elements in explaining remittance behaviour. Drawing on these estimates, we argue that the results point towards altruism and investment as the two possible motives behind remittance flows to Moldova, which significantly affect the country's development prospects.

Suggested Citation

  • Matloob Piracha & Amrita Saraogi, 2012. "The Determinants of Remittances: Evidence from Moldova," Oxford Development Studies, Taylor & Francis Journals, vol. 40(4), pages 467-491, December.
    • Handle: RePEc:taf:oxdevs:v:40:y:2012:i:4:p:467-491
    DOI: 10.1080/13600818.2012.729573
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    References listed on IDEAS

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    1. Mahuteau, Stephane & Piracha, Matloob & Tani, Massimiliano, 2010. "Selection Policy and Immigrants' Remittance Behaviour," IZA Discussion Papers 4874, Institute of Labor Economics (IZA).
    2. Francis Kemegue & Emmanuel Owusu-Sekyere & Renee van Eyden, 2011. "What Drives Remittance Inflows to Sub-Saharan Africa? A Dynamic Panel Approach," Working Papers 201128, University of Pretoria, Department of Economics.
    3. Amuedo-Dorantes, Catalina & Pozo, Susan, 2010. "Accounting for Remittance and Migration Effects on Children's Schooling," World Development, Elsevier, vol. 38(12), pages 1747-1759, December.
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    1. Kakhkharov, Jakhongir & Akimov, Alexandr & Rohde, Nicholas, 2017. "Transaction costs and recorded remittances in the post-Soviet economies: Evidence from a new dataset on bilateral flows," Economic Modelling, Elsevier, vol. 60(C), pages 98-107.
    2. Laetitia Duval & François-Charles Wolff, 2016. "Do remittances support consumption during crisis? Evidence from Kosovo," Oxford Development Studies, Taylor & Francis Journals, vol. 44(4), pages 479-492, October.

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