Determinants of Remittances: The Case of Kosovo

21 Pages Posted: 27 Sep 2009 Last revised: 30 Dec 2009

See all articles by Sokol Havolli

Sokol Havolli

Government of the Republic of Kosovo - Central Bank of the Republic of Kosovo

Date Written: September 5, 2009

Abstract

What drives remittances is one of the most important questions in the migration literature. However, there is no systematic theory that explains such behaviour and the statistical evidence is scarce, especially for the case of Kosovo. Using the data from a survey conducted in Kosovo in 2006, this paper is an attempt to find the main determinants of remittances. The results suggest that, among others, the motive to invest and perceptions about the business environment are significant determinants of remittances. Testing the link maintenance theory through the migration duration, the results also suggest that remittances grow at a decreasing rate and the evidence for the aspirations to inherit assets in home country exists and affect remittances positively. These findings show that there is room for policy-makers to improve the business environment by investing in infrastructure, fight corruption, etc., which would affect perceptions of migrants and, hence, increase intentions to remit more.

Keywords: Remittances, Migration, Kosovo

JEL Classification: F22, F24

Suggested Citation

Havolli, Sokol, Determinants of Remittances: The Case of Kosovo (September 5, 2009). Available at SSRN: https://ssrn.com/abstract=1478989 or http://dx.doi.org/10.2139/ssrn.1478989

Sokol Havolli (Contact Author)

Government of the Republic of Kosovo - Central Bank of the Republic of Kosovo ( email )

Garibaldi Street
Number 33
Prishtina, KS 10 000

HOME PAGE: http://www.bqk-kos.org/Publications/Determinants_of_Remittances_The_case_of_Kosovo.pdf

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