Remittances and Portfolio Values: An Inquiry Using Spanish Immigrants from Africa, Europe and the Americas

37 Pages Posted: 16 Jun 2012

See all articles by Catalina Amuedo-Dorantes

Catalina Amuedo-Dorantes

San Diego State University - Department of Economics; IZA Institute of Labor Economics

Susan Pozo

Western Michigan University - Department of Economics

Abstract

Using a recent Spanish database, we show that remittances respond to cross country differences in portfolio values. This behavior suggests that immigrants are sophisticated economic optimizers who take advantage of opportunities to invest trans-nationally given the networks that immigrants are likely to have developed both in their host and home communities. The responsiveness to portfolio variables persists whether immigrants are highly or less highly educated. However, there are differences in the individual portfolio variables to which immigrants from various regions of the world respond to, as we would expect given migrants' diverse backgrounds and motives for emigrating. Additionally, remitting patterns change over time with the length of the migration spell, suggesting that remittances sent for portfolio motives become more likely as the immediate needs of family left back home are addressed and immigrants settle down in their host communities.

Keywords: remittances, portfolio motives, Spain

JEL Classification: F24, F22

Suggested Citation

Amuedo-Dorantes, Catalina and Pozo, Susan, Remittances and Portfolio Values: An Inquiry Using Spanish Immigrants from Africa, Europe and the Americas. IZA Discussion Paper No. 6622. Available at SSRN: https://ssrn.com/abstract=2085209

Catalina Amuedo-Dorantes (Contact Author)

San Diego State University - Department of Economics ( email )

5500 Campanile Drive
San Diego, CA 92182
United States
619-594-1663 (Phone)
619-594-5062 (Fax)

IZA Institute of Labor Economics

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

Susan Pozo

Western Michigan University - Department of Economics ( email )

1903 West Michigan Avenue
Kalamazoo, MI 49008
United States
269-387-5553 (Phone)
269-387-5637 (Fax)

HOME PAGE: http://homepages.wmich.edu/~pozo/

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