Endogeneity and sample selection in a model for remittances

Bettin, Giulia; Lucchetti, Riccardo; Zazzaro, Alberto

doi:10.1016/j.jdeveco.2012.05.001

Cited by 58 publications

(52 citation statements)

References 53 publications

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“…This is based on the wisdom of some studies that have shown a complementary relationship between remittance and financial development (e.g. Osabuohien and Efobi, 2012;Bettin et al, 2012;Efobi et al, 2014). These studies points out that in countries with high remittance inflow and improved financial institutions, remittance recipient can better utilise the fund for investment and business development.…”

Section: Literature Reviewmentioning

confidence: 99%

Diaspora Remittance Inflow, Financial Development and the Industrialisation of Africa

et al. 2016

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Section: Literature Reviewmentioning

confidence: 99%

Diaspora Remittance Inflow, Financial Development and the Industrialisation of Africa

et al. 2016

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“…If developing countries want to exploit the growth potential of remittances received from their diaspora abroad, the intertemporal behaviour of migrants is a key element in order to predict how these flows might evolve over time. However, as has been convincingly argued in Bettin, Lucchetti, and Zazzaro (2012), an empirical model for remittances must handle properly the endogenous self-selection of remitters. In addition, attention needs to be paid to the potential endogeneity of labour and consumption decisions by households who want to maximize the amounts sent home and set their labour offer and consumption patterns accordingly.…”

Section: Implications For Structural Modelling Of Remittance Behaviourmentioning

confidence: 98%

Intertemporal Remittance Behaviour by Immigrants in Germany

Bettin

Lucchetti

2012

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractIn this paper, we use data from the German Socio-Economic Panel (SOEP) in the 1997-2009 period for a large sample of migrants from 84 countries in order to develop an empirical model for the propensity by migrants to remit. Our model takes into full account the intertemporal aspects of the problem, which has been ignored by a large part of the applied literature, despite its theoretical and empirical importance.We find that most results already established in the empirical literature are confirmed; however, the intertemporal nature of the remittance behaviour emerges very clearly, giving rise to individual patterns which are difficult to synthesize by a simple description. Building on our framework, we find also support for theoretical models which predict different remittance time paths between return and permanent migrants.

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“…These include the following channels: exchange rate (see Rajan & Subramanian, 2005;Lartey et al, 2008;Acosta et al, 2009;Barajas et al, 2009;Selaya & Thiele, 2010;Dzansi, 2013;Amuedo-Dorantes, 2014) and financial sector development (Aggarwal et al, 2011;Bettin et al, 2012;Osabuohien & Efobi, 2013;Efobi et al, 2014;Kaberuka & Namubiru, 2014;Karikari et al, 2016;Efobi et al, 2016).…”

Section: Stylize Facts Theoretical Underpinnings Intuition and Relamentioning

confidence: 99%

Remittances, ICT and Doing Business in Sub-Saharan Africa

2018

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Purpose -This study examines how linkages between information and communication technology (ICT) and remittances affect the doing of business.Design/methodology/approach -The focus is on a panel of 49 sub-Saharan African countries for the period 2000-2012. The empirical evidence is based on Generalised Method of Moments.Findings -While we establish some appealing results in terms of net negative effects on constraints to the doing of business (i.e. time to start a business and time to pay taxes), some positive net effects are also apparent (i.e. number of start-up procedures, time to build a warehouse and time to register a property). We also establish ICT penetration thresholds at which the unconditional effect of remittances can be changed from positive to negative, notably: (i) for the number of start-up procedures, an internet level of 9.00 penetration per 100 people is required while (ii) for the time to build a warehouse, a mobile phone penetration level of 32.33 penetration per 100 people is essential. Practical and theoretical implications are discussed.Originality/value -To the best of our knowledge, this is the first study to assess linkages between ICT, remittances and doing business in Sub-Saharan Africa.JEL Classification: F24; F63; L96 O30; O55

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Endogeneity and sample selection in a model for remittances

Cited by 58 publications

References 53 publications

Diaspora Remittance Inflow, Financial Development and the Industrialisation of Africa

Diaspora Remittance Inflow, Financial Development and the Industrialisation of Africa

Intertemporal Remittance Behaviour by Immigrants in Germany

Remittances, ICT and Doing Business in Sub-Saharan Africa

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