The Altruistic Motive of Remittances: A Panel Data Analysis of Economies in Sub Saharan Africa

Fonchamnyo, Dobdinga Cletus

doi:10.5539/ijef.v4n10p192

Cited by 14 publications

(23 citation statements)

References 26 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Scholars and policymakers often focus on the impact of remittances on migrants' home regions and on their significance for the economies of developing countries. Many such studies and policies are based on the assumption that migrants remit for altruistic reasons (Agarwal and Horowitz 2002;Anwar and Mughal 2012;Fonchamnyo 2012) and that their motivation therefore remains unchanged throughout their absence from home (Agunías 2009;Johnson 2010;Ratha 2007). I question this assumption and argue that remittances do not flow like other forms of international capital, but circulate between family and community members who share relations of reciprocity and exchange.…”

Section: Aim Argument and Structurementioning

confidence: 99%

The resilience of migrant money: how gender, generation and class shape family remittances in Peruvian migration

Pærregaard

2015

Global Networks

View full text Add to dashboard Cite

Scholars and policy makers have argued that because altruism drives remittance sending, migrant money is more resilient to uncertainty than other capital flows. In this article, I question this assumption through ethnographic examination of remittance sending by Peruvian migrant families. When in their lives do Peruvian migrants start to remit? Who are the recipients? What is the purpose of their remittances? How long do they last and why do they stop? I argue that, to answer these questions, we need to investigate how migrants make remittance commitments to different household members, how these attribute value to the remittances and how this value becomes the object of negotiation and contestation. The findings indicate that remittances reinforce existing relations of gender, generation and class in Peruvian society and suggest that while short‐lived remittances are based on contractual commitments and driven by altruism, long‐term remittances are based on emotional commitments and driven by both non‐utilitarian and utilitarian motives.

show abstract

Section: Aim Argument and Structurementioning

confidence: 99%

The resilience of migrant money: how gender, generation and class shape family remittances in Peruvian migration

Pærregaard

2015

Global Networks

View full text Add to dashboard Cite

show abstract

“…The 21st century witnessed a significant transformation in financial institutions from advances in innovation in information technology by using electronic banking (Fonchamnyo, 2012). Information technology is advancing the improvement of banking distribution channels and also refining banks' business policies and marketing plans.…”

Section: Introductionmentioning

confidence: 99%

Oil and Gas Production and the Growth of Ghana’s Economy: An Initial Assessment

Acquah-Andoh¹

2018

IJEFR

View full text Add to dashboard Cite

Oil and gas resources present enormous opportunities for the economic development of low income economies, but poor management of these resources can result in dire consequences for the foundations of the resource-endowed nation. The discovery of oil and gas in Ghana is as significant as the policies and measures to ensure optimum benefits to the nation. This paper evaluates the sustainability of petroleum production in the light of the medium term policy structure, the Ghana Shared Growth and Development Agenda (GSGDA). In particular, the economic contribution of oil and gas to Ghana’s GDP and sustainable investment options for petroleum revenues were examined using ordinary least squares (OLS) regression. The evidence suggests that at current production levels, petroleum is not a significant contributor to Ghana’s GDP after adjusting for the contribution from other sectors of the economy. The consistent appreciation of Ghana’s real effective exchange rate between 2010 and 2013 led to a deterioration of the competitiveness of the non-oil sector and declining contribution of the agricultural sector to GDP; and further eroded the net impact of petroleum production. Investing petroleum proceeds in the non-oil sector and expansion of the export base are a viable option for utilising petroleum revenues.

show abstract

“…Another variable that captures the inheritance motive is the relative dependency ratio. A positive sign indicates that that the dominant motive is altruism as higher number of dependents in the home country (relative to the host country) stimulates foreign financial support (ARVIN and LEW, 2012;FONCHAMYO, 2012). A negative sign means in the presence of higher home country dependency ratio, remittances is falling; one way of rationalising this behaviour is that higher dependency ratios have a dampening effect on the inheritance motive and hence discourage remittances.…”

mentioning

confidence: 99%

“…Finally, microeconomic 4 theory provides the foundation for exploring the motives for remittances, which are then captured in a model comprising macroeconomic variables. Previous macroeconomic studies of remittances tend to utilise a reduced form equation for remittance with little or no reference to the underlying microeconomic foundations (HIGGINS et al, 2009;FONCHAMYO, 2012; LIM and MORSHED, 2014). These contributions collectively make for a useful and important step in advancing the literature on remittances.…”

mentioning

confidence: 99%

A gravity model of remittance determinants: evidence from Latin America and the Caribbean

2016

View full text Add to dashboard Cite

Given the importance of remittances it is crucial for the governments and the financial sectors in the region to recognize the specificity of each kind of remittance. A systematic analysis of the determinants of remittances would provide invaluable insights to policy makers and contribute to the design of more appropriate regulations. This in turn can promote an effective strategy for the mobilisation of remittances. In this paper the macroeconomic determinants of remittances are estimated for a set of Latin American and Caribbean countries. Generally two approaches to modelling the determinants of remittances have been undertaken in the empirical literature. First a microeconomic approach utilising household survey data (DE LA BRIÈRE, 2002; AMUENDO-DORANTES and POZO;YANG, 2008). Second a macroeconomic approach which uses balance of payments data (VARGAS-SILVA and HUANG, 2006; ADAMS, 3 2009). A third approach which combines a microeconomic foundation with macroeconomic data has been gaining some momentum (RAPOPORT and DOCQUIER, 2005; SCHIOPU and SIEGFRIED, 2006). It is this latter approach upon which the current study is based.A panel data set of bilateral remittance flows from 18 industrialised remittance sending countries 3 to 27 remittance receiving Latin American and Caribbean (LAC) countries 4 over the period 1998 to 2007 is utilised to study the determinants of remittances. This paper makes several contributions to the literature on remittances.Generally research on remittances in the LAC region is concentrated on a single country or a minority of countries (SAYAN et al., 2010;VARGAS-SILVA and HUANG, 2006; CASTILLO-PONCE et al, 2011). A number of studies have used bilateral data to study remittances (LUETH and RUIZ-ARRANZ, 2008;FRANKEL, 2011; DOCQUIER et al, 2012). These studies feature selected Latin American countries as part of a larger data set that focuses on developing countries in general. In this study a new measure of bilateral remittances is proposed, one that is based on the assumption that aggregate remittance inflows for a country are directly linked to the pattern of a migrating population. This makes it possible to derive bilateral estimates of remittances for a larger group of countries in the LAC region than has been available previously.Second, the effect on remittances is examined for a comprehensive set of economic, demographic and risk related factors (both man-made and natural). This is unlike earlier studies which tend to ignore the potential effects of demographic and/or risk related factors that may be important in capturing altruistic and investment motivations (VARGAS-SILVA and HUANG, 2006; LIN, 2011). Finally, microeconomic 4 theory provides the foundation for exploring the motives for remittances, which are then captured in a model comprising macroeconomic variables. Previous macroeconomic studies of remittances tend to utilise a reduced form equation for remittance with little or no reference to the underlying microeconomic foundations (HIGGINS et al, 2009;FONCHAMYO,...

show abstract

The Altruistic Motive of Remittances: A Panel Data Analysis of Economies in Sub Saharan Africa

Cited by 14 publications

References 26 publications

The resilience of migrant money: how gender, generation and class shape family remittances in Peruvian migration

The resilience of migrant money: how gender, generation and class shape family remittances in Peruvian migration

Oil and Gas Production and the Growth of Ghana’s Economy: An Initial Assessment

A gravity model of remittance determinants: evidence from Latin America and the Caribbean

Contact Info

Product

Resources

About