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Determinants of workers’ remittances: An empirical investigation for a panel of eleven developing Asian economies
Author(s) -
Mallick Hrushikesh
Publication year - 2017
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12519
Subject(s) - remittance , economics , per capita , investment (military) , consumption (sociology) , per capita income , panel data , capital (architecture) , monetary economics , demographic economics , economic growth , econometrics , population , social science , demography , archaeology , sociology , politics , political science , law , history
We explore the key motives of migrant workers’ remittances from abroad for 11 major Asian migrant‐sending countries. Using panel regressions, we find that relative higher growth rate, interest rate and capital market returns of home over the host, investment, financial deepening at home have significant impact on remittance inflows into Asia, along with higher per capita incomes and international crude oil prices. With incorporation of per capita incomes and lagged impact of remittances, we observe an emergence of consumption motives to remit. Therefore, we conclude that both investment and altruistic motives are the driving forces for remittances inflows into the Asian economies.