Motivations for Remittances: Evidence from Moldova

38 Pages Posted: 7 Feb 2011

See all articles by Matloob Piracha

Matloob Piracha

University of Kent - Department of Economics; IZA Institute of Labor Economics

Amrita Saraogi

Bunge Ltd.

Date Written: January 1, 2011

Abstract

This paper explores the factors that account for the receipt of remittances across households in Moldova who have migrants abroad. Unlike most of the existing literature, we approach our research question from the perspective of the recipient household and use it to interpret the determinants/motivations of remittances. Our results show that a combination of household and migrant characteristics and some community level variables are the key elements in explaining the remittance behaviour in Moldova. Drawing from these estimates, we conclude that altruism and investment (proxied by the level of economic development at the regional level) are the two main motives behind remittance flows to Moldova.

Keywords: Remittances, Migration, Moldova

JEL Classification: F22, F24

Suggested Citation

Piracha, Matloob and Saraogi, Amrita, Motivations for Remittances: Evidence from Moldova (January 1, 2011). IZA Discussion Paper No. 5467, Available at SSRN: https://ssrn.com/abstract=1756005

Matloob Piracha (Contact Author)

University of Kent - Department of Economics ( email )

Keynes College
Kent, CT2 7NP
United Kingdom

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Amrita Saraogi

Bunge Ltd. ( email )

White Plains, NY
United States

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