Are Turkish Migrants Altruistic: Evidence from the Macro Data

Abstract

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Discussing the intriguing relation between unemployment and giving practices

“…We expect that, according to our Review of Literature (Section ), the following variables will exert a positive effect on the WGI for a given country: the value of domestic savings (according to Lord & Rangazas, , and Mayo & Tinsley, ), the value of health expenditures per capita (following Onwujekwe et al, , and Salter, ), and the size of the workforce (following Brechet & Lambrecht, , and Brandt et al, ). However, we also expect that the level of personal remittances received (as a percentage of GDP) reduces the magnitude of the WGI for a country, which follows Licuanan et al (), Beyene (), and Akkoyunlu (). Recall that, although we must control for the values of real GDP per capita (Armellini & Basu, ; Heinemann, ) and the level of corruption (Borck, ; Persson & Tabellini, ), we do not have prior expectations regarding the signs of the estimated coefficients for these variables.…”

“…These studies have analyzed personal remittances received and those sent. Most studies focus on personal remittances received (Akkoyunlu, ; Beyene, ; Fonchamnyo, ; Licuanan, Mahmoud, & Steinmayr, ), as these flows are determined by immigrants to the host country. Therefore, because of their concerns regarding the well‐being of their relatives and friends and for the purpose of accumulating savings for their own retirement, these migrant workers elect to remit funds to their home countries.…”

Income Inequality in Host Countries and Remittances: A Discussion of the Determinants of Portuguese Emigrants' Remittances

“…Akkoyunlu () has empirically tested this altruistic hypothesis on Turkish emigrants. This hypothesis concerns the emigrants' incentives for sending higher values of remittances when they are intensely concerned with threats to the well‐being of their closest relations in the home country (parents, children, other relatives, and close friends).…”

“…This hypothesis concerns the emigrants' incentives for sending higher values of remittances when they are intensely concerned with threats to the well‐being of their closest relations in the home country (parents, children, other relatives, and close friends). Akkoyunlu () used a cointegrating relationship with regard to the remittances of Turkish workers in Germany, the real Turkish GDP per capita, the real German GDP per capita, the stock of Turkish migrants in Germany, the real exchange rate, and the government's instability. Akkoyunlu () found a negative coefficient associated with Turkish income and positive coefficients associated with the real exchange rate and political instability, which according to Akkoyunlu (), supported the hypothesis that Turkish remittances from Germany are altruistically motivated.…”

“…First, the evolution of the host country's national income has proven to influence the remittances that emigrants around the world send to their home countries (Rapoport and Docquier, ; Akkoyunlu, ). Emigrants' reasons for sending these remittances vary widely, as discussed in previous sections.…”