The determinants of remitances: A comparison between Albania and Moldova

Type Conference Paper - Third International Student Conference Proceeding “Empirical Models in Social Sciences”
Title The determinants of remitances: A comparison between Albania and Moldova
Publication (Day/Month/Year) 2008
Using household survey data for Albania and Moldova, this paper compares remittance behaviour between the two countries. We investigate remittances from the receiver’s perspective, analysing the characteristics of both the remitter and remittance receiving household. This paper seeks to empirically test the amount of remittances in both countries using Tobit models. We focus on testing the theoretical motives to remit such as altruism, loan repayment, insurance (family or self-provided), the bequest motive and the New Economics of Labour Migration. Although Albania and Moldova are rather similar in terms of social and political background, size and economic situation, we see different remitting behaviour emerge for the two countries. We find evidence for self-provided insurance in Albania. We also find significant results for the bequest motive and altruism. For Moldova, we find significant results for the loan repayment motive with regard to the repayment of migration loans. It is apparent that there are multiple reasons why migrants remit and these depend on the different characteristics of the migrants, the receiving households and causes of migration in both the sending and receiving countries.

Related studies