Causes and Impacts of Remittances: Household Survey Evidence from Egypt

MAGKS Discussion Paper No. 37/2017

49 Pages Posted: 18 Sep 2017

See all articles by Mohammad Reza Farzanegan

Mohammad Reza Farzanegan

University of Marburg - Center for Near and Middle Eastern Studies (CNMS)

Sherif Maher Hassan

Suez Canal University - Faculty of Commerce; The British University in Egypt - Faculty of Business Administration, Economics, and Political Science

Ribal Abi Raad

Concordia University, Quebec

Date Written: September 14, 2017

Abstract

This research provides a qualitative and empirical investigation of the microeconomic causes and impacts of remittances in Egypt. We use data from a field study, involving interviews of 304 remittance-receiving families across 16 Egyptian governorates during May 2015–May 2016. Our Ordinary Least Square (OLS) and Tobit regressions show that the duration of migration, migrant’s age, household income, and household head’s job are the most important predictors of the level of remittances. The first three variables induce the value of received remittances, while the final variable, household head’s job, acts to the contrary and reduces remittances. In terms of remittances allocation, everyday expenses and real estate investments absorb the vast majority of channeled remittances. Most of the respondents (85%) do not invest remittances, and those who invest remittances mainly reside in Upper and Lower Egypt due to the low living costs in these regions.

Keywords: remittances, Egypt, altruistic, self-interest, Tobit

JEL Classification: D14, J6, O15

Suggested Citation

Farzanegan, Mohammad Reza and Hassan, Sherif Maher and Abi Raad, Ribal, Causes and Impacts of Remittances: Household Survey Evidence from Egypt (September 14, 2017). MAGKS Discussion Paper No. 37/2017, Available at SSRN: https://ssrn.com/abstract=3036890 or http://dx.doi.org/10.2139/ssrn.3036890

Mohammad Reza Farzanegan

University of Marburg - Center for Near and Middle Eastern Studies (CNMS) ( email )

Deutschhausstraße 12
Marburg, 35037
Germany

HOME PAGE: http://www.uni-marburg.de/cnms/wirtschaft

Sherif Maher Hassan (Contact Author)

Suez Canal University - Faculty of Commerce

Ismailia
Egypt

HOME PAGE: http://foc.scuegypt.edu.eg/?page=pages&page_id=9

The British University in Egypt - Faculty of Business Administration, Economics, and Political Science ( email )

Egypt

Ribal Abi Raad

Concordia University, Quebec ( email )

Canada

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