An Analysis of the Incomes and Current Personal Transfers of Hungarians Living Abroad

Csortos, Orsolya; Kóczián, Balázs

doi:10.25201/fer.16.2.527

Cited by 3 publications

(5 citation statements)

References 18 publications

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“…On the macro-level, studies found evidence for the relationship between remittances and macro-determinants like government expenditures (Hathroubi/Aloui 2016), the economic output of the country sending remittance (Akkoyunlu/Kholodilin 2008) or receiving it (Vargas-Silva 2008). As for remittances to Hungary, recent studies analysed World Bank (Kajdi 2016) or Eurostat Balance of Payments (BoP) data (Csortos/Kóczián 2017). Based on the latter data source, temporary migrants who left Hungary for less than a year had an income of 3.2 billion euros in 2018 ("Compensation of employees" in the BoP), while those who migrated permanently (i.e.…”

Section: Literature Overviewmentioning

confidence: 99%

“…for at least one year, "Current personal transfers" in BoP) sent more than 900 million euros in 2018 (Eurostat 2019). However, it is important to note that data in the "Compensation of employees" row in the BoP only refer to potential remittances, but it does not mean that they are actually transferred to household members who remain behind, since this row captures gross incomes (Csortos/Kóczián 2017). These numbers therefore also include taxes, consumption and savings, for example, besides the amounts sent to the country of origin, which can result in bias when using them for analysing remittance fl ows.…”

Section: Literature Overviewmentioning

confidence: 99%

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Remittance Behaviour of Intra-EU Migrants – Evidence from Hungary

Kajdi

Ligeti

2020

CPoS

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After the eastern expansion of the European Union (EU), a large number of emigrants left their home countries to work in economically better developed western member states. Hungary followed this EU emigration trend with a certain time lag. However, the rising number of emigrants caused structural problems in the domestic labour market. A comprehensive examination of intra-EU remittances as one of the major determinants of migration has been outside the scope of recent research activity. The data from the Hungarian Microcensus survey and the first Hungarian household survey focusing on the topic of remittances can provide a valuable case study of intra-EU private transfer flows. The aims of this study are twofold. On the one hand we intend to provide empirical evidence for the major factors that determine remittance propensity by calculating probit regressions. On the other hand, OLS regressions are calculated in order to introduce variables which are associated with money transfers. These results are interpreted within the theoretical framework of the New Economics of Labour Migration (NELM) to identify the underlying motivations for remittances. The most important findings are that older men with vocational school education have the highest remittance propensity, and the likelihood of sending private support is higher among short-term migrants. As the key factors, the income of the sender person is positively associated with the sum of money flows, while the income of the receiving household is negatively associated. Within the theoretical framework of NELM, these results favour the dominance of altruistic motives, since supporting the household members who remain behind seems to be the major driving force. However, when intentions of returning home are considered in the models, it seems that self-interest might also play a role as a driver of remittances. Within this study, the main focus was on the characteristics of the senders, meaning that a possible field of future research could be an examination of these questions from the perspective of remittance receiver households.

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Section: Literature Overviewmentioning

confidence: 99%

Section: Literature Overviewmentioning

confidence: 99%

Remittance Behaviour of Intra-EU Migrants – Evidence from Hungary

Kajdi

Ligeti

2020

CPoS

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“…However, in 2012, with the easing of the German regulations related to foreign employment and the related rise in the compensation of employees, the volume of incomes transferred to Germany and Austria declined substantially. In this regard, it should be noted that although wages increase the Hungarian GNI value, they are not transferred to Hungary in full, as they also include the taxes and the consumption of those temporarily living abroad (Csortos -Kóczián 2017).…”

Section: Which Countries Benefited From the Outflow Of Income?mentioning

confidence: 99%

Developments in the GDP-GNI Gap in Hungary and the CEE Region

Balogh¹,

Boldizsár²,

Gerlaki³

et al. 2018

Hitelintézeti szemle

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With the progress of globalisation, due to the cross-border movement of the factors of production, there is a gap between the output of the Hungarian economy and the primary income generated by production, allocable to residents. The GDP-GNI gap shows the difference between the performance of the domestic economy and the primary income allocable to the individual sectors of the economy, and it also provides useful information on the current burdens of the country's accumulated net foreign liabilities. This paper presents the factors that have influenced the changes in the GDP-GNI gap in recent years and examines how the income of the individual economic sectors has changed, breaking down the available data by industries and countries. We examine the correlation between the GDP-GNI gap and the development of the economy by analysing the international developments and regional trends, and then try to survey the trends that determine the domestic GDP-GNI gap over the short and long term. We find that, due to the anticipated growth in the income of foreign-owned companies, the GDP-GNI gap may increase over the short run, while its long-term trend depends significantly on whether the convergence of the Hungarian economy with the Western countries is implemented from external or internal funds.

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“…The remittancerelated concepts included in balance of payments statistics (e.g. compensation of employees, transfers) and recent developments therein were presented in detail by Csortos -Kóczián (2017).…”

Section: Studies László Kajdimentioning

confidence: 99%

“…Based on the balance of payments data on incomes transferred by Hungarian citizens living abroad, in the case of temporary workers ("Compensation of employees for workers in temporary employment abroad") the two most important destination countries are Austria and Germany (Figure 1): these countries accounted for nearly three fourths of the total amount of around EUR 3.5 billion (approximately HUF 1,050 billion) in 2016. The transfers of employees working permanently abroad have increased continuously since the crisis and by 2016 they amounted to EUR 700 million (around HUF 210 billion) (Csortos -Kóczián 2017).…”

Section: Migration and Remittances In The Case Of Hungarymentioning

confidence: 99%

Remittances – First Results of a New Survey

Kajdi¹

2018

Hitelintézeti szemle

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With the surge in emigration, the level of support provided by Hungarians living and working abroad to the households remaining in the home country has come to the foreground both in Hungarian public discourse and scientific research. For the most part, the research focuses on the contribution of remittances to the economy of developing countries, and only a few studies address the role of these funds in the context of migration processes within the European Union. In the course of 2017, in cooperation with the Hungarian Central Statistical Office, the Magyar Nemzeti Bank conducted a survey on this subject under the title "Family Assistance". For the first time, as a supplement to macrostatistics-based estimates this survey provides an opportunity to glean information about the underlying factors of remittances and about the characteristics of the senders as well as the receiving households. Initial results indicate, among other things, that around one fifth of emigrants and more than 65,000 households in Hungary are affected by the phenomenon, and support from abroad is an important source of income for a significant portion of households.

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An Analysis of the Incomes and Current Personal Transfers of Hungarians Living Abroad

Cited by 3 publications

References 18 publications

Remittance Behaviour of Intra-EU Migrants – Evidence from Hungary

Remittance Behaviour of Intra-EU Migrants – Evidence from Hungary

Developments in the GDP-GNI Gap in Hungary and the CEE Region

Remittances – First Results of a New Survey

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