Determinants of Remittances: The Case of Kosovo

Havolli, Sokol

doi:10.2139/ssrn.1478989

Cited by 10 publications

(11 citation statements)

References 16 publications

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“…Following Havolli (2009), we expect that stronger links suggest a feeling of indebtedness to the household of origin and thus will result in higher remittances.…”

Section: Data Empirical Model and Methodologymentioning

confidence: 99%

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Who Remits More? Who Remits Less? Evidence from Kosovar Migrants in Germany and Their Households of Origin

Meyer

Möllers

Buchenrieder

2012

Oxford Development Studies

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The prevalence of subsistence-oriented farming and the scarcity of non-farm employment make migration a common livelihood strategy in rural Kosovo. Consequently, many households rely heavily on remittances. Although migrants themselves often struggle to finance their everyday lives in their host countries, remittances continue to flow. As almost all migrants remit, it is required that the level of remittances be monitored and the factors determining the absolute amount of remittances to the home country be known. There are three overarching determinants: the connection between the migrant and the household of origin, the need for financial support of the household of origin and the financial means of the migrant. This contribution draws on an original, detailed and very recent database collected using an innovative survey design. It provides significant insights into the country-and culture-specific driving forces behind remittances from Germany to Kosovo.

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“…Following Havolli (2009), we expect that stronger links suggest a feeling of indebtedness to the household of origin and thus will result in higher remittances.…”

Section: Data Empirical Model and Methodologymentioning

confidence: 99%

“…However, despite some recent efforts (e.g. Havolli, 2009;UNDP, 2010), country-specific evidence is still fragmentary. Adding to these recent studies, we make use of our own 2009/2010-household survey carried out among Kosovar migrants in Germany and their matching households of origin.…”

Section: Conclusion and Policy Recommendationsmentioning

confidence: 99%

Who Remits More? Who Remits Less? Evidence from Kosovar Migrants in Germany and Their Households of Origin

Meyer

Möllers

Buchenrieder

2012

Oxford Development Studies

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“…Research on the effect of remittances on poverty in Kosovo is rather scarce and most of the studies share the aforementioned limitations. Havolli (2009) analyze the determinants of remittances in Kosovo using migration survey gathered by Riinvest in 2006. Findings of this study suggest, amongst others, that the motive to invest and the various perceptions surrounding the business environment significantly determe remittances.…”

Section: Theoretical and Empirical Reviewmentioning

confidence: 99%

Do Remittances reduce poverty in Kosovo? - A counterfactual analysis

Loxha

2019

South East European Journal of Economics and Business

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Migration and remittances are argued to be an effective mechanism for mitigating poverty, as well as a coping mechanism for disadvantaged households with no or little employment and earning opportunities in Kosovo. A considerable part is reported to be directed towards consumption and very little for investment or enterpreneurship purposes. The high dependence of households on remittances suggests that poverty rates would be much higher without the safety net provided through migration and remittances. The conventional approach of empirically estimating determinants of remittances, including those focusing on Kosovo, treats both remittance and migration behaviour as independent decisions. Empirically estimating determinants of remittances while overlooking the importance of variables that influenced the decision to migrate will leave out these determinants and also bias the results. Hence, this study treats migration and remittance decision as a joint process and focuses on the household. More precisely, it analyses the impact that remittances and migration have on the poverty in Kosovo, in a hypothetical case, without remittances and migration using data from the Household Budget Survey 2011. Due to the potential presence of selection bias, this study uses a two-stage Heckman-type selection procedure which suggests that there is no selection bias. The study develops counterfactual consumption estimates for remittance recipient households through the use of survey bootstrap procedure to predict the consumption of households in the case of no remittances. The results support the hypothesis that remittances increase the consumption of recipient households. The poverty rate would be higher for a considerable proportion of households in the case of no remittances. The poverty rates would increase particularly in rural areas. The novelty of this study lies on the methodological approach chosen to investigate the impact of remittances on poverty in Kosovo. In contrast to previous analysis, this study controls for potential selection bias and empirically assesses whether the expectations on the poverty reducing effect of remittances in Kosovo hold.

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“…They spend remittance mostly on consumption purposes like, consumption of food and non-food items and durable goods. In addition, remittances are utilized in many other purposes like, education, housing, buying of lands and properties, business and so on (Abbas et al, 2014 andRaihan et al, 2009) Havolli (2009) also argued that what drives international remittance is an important question in remittance literature. Scholars classified the determinants of international remittance into two categories, namely, (1) microeconomic or socio-economic characteristics of migrants like age, sex, education, marital status, household size, skill, training, experience, monthly earnings and so on, and (2) macroeconomic determinants like GDP growth rate, inflation, exchange rate, wages of host country and so on (Kelly and Solomon, 2009).…”

Section: Introductionmentioning

confidence: 99%

Utilization of International Remittances in Bangladesh

Kumar¹,

Hossain²,

Osmani³

2018

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The study explores the significant factors and utilization of international remittance in Bangladesh by using primary data from 84 migrant households. The study applies multiple linear regression model estimated by OLS method. The estimated results find that household size, training, skill, years at abroad and earnings significantly affect international remittance in Bangladesh. This indicates migrants remit home motivated by mixed views like, altruistic, loan repayment and exchange view. The study also finds 50.01 percent of remittance is utilized only in consumption of food purpose. The study suggests arranging training and skill enhancing programs to migrants and creating investment opportunities.

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Determinants of Remittances: The Case of Kosovo

Cited by 10 publications

References 16 publications

Who Remits More? Who Remits Less? Evidence from Kosovar Migrants in Germany and Their Households of Origin

Who Remits More? Who Remits Less? Evidence from Kosovar Migrants in Germany and Their Households of Origin

Do Remittances reduce poverty in Kosovo? - A counterfactual analysis

Utilization of International Remittances in Bangladesh

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