Migration and Remittances: Causes and Linkages

25 Pages Posted: 31 Oct 2006

See all articles by Caglar Ozden

Caglar Ozden

World Bank - Research Department

Yoko Niimi

Doshisha University; Asian Growth Research Institute

Multiple version iconThere are 2 versions of this paper

Date Written: August 2006

Abstract

The paper empirically examines the determinants of remittance flows at the cross-country level. It considers, among other things, the significance of the level of migration, the education level of migrants and financial sector development in determining remittances. Given the potential endogeneity problems, the migration and financial development variables are instrumented in the estimation. The migration level is found to be the main driver of remittance flows even after controlling for the endogeneity bias through instrumental variable estimation. We find that the education level of migrants relatively to the population in home countries, the size of economy and the level of economic development of recipient countries adversely affect remittance flows. While the effect of financial sector development is found to be positive, its significance was not strongly supported in our analysis.

Keywords: migration, remittances, brain drain

JEL Classification: F22, F30, F33, F36

Suggested Citation

Özden, Çaglar and Niimi, Yoko, Migration and Remittances: Causes and Linkages (August 2006). Available at SSRN: https://ssrn.com/abstract=941436 or http://dx.doi.org/10.2139/ssrn.941436

Çaglar Özden (Contact Author)

World Bank - Research Department ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/cozden

Yoko Niimi

Doshisha University ( email )

Imadegawa-agaru, Shinmachi-dori, Kamigyo-ku
Kyoto, Kyoto 602-0047
Japan

Asian Growth Research Institute ( email )

11-4 Ohtemachi, Kokurakita-ku
Kitakyushu, Fukuoka 803-0814
Japan

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