Remittances and corruption

Berdiev, Aziz N.; Kim, Yoonbai; Chang, Chun‐Ping

doi:10.1016/j.econlet.2012.10.008

Cited by 74 publications

(59 citation statements)

References 24 publications

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“…For example, in support of their theoretical model, Abdih et al (2012) find that, in a cross-section of 111 countries, higher ratios of monetary remittances to GDP lead to less control of corruption, government effectiveness and rule of law. A similar conclusion is obtained by Berdiev et al (2013), who study country-level effects of monetary remittances on corruption in a panel of 111 countries. Contrasting evidence is provided by Tyburski (2012), who finds that, in 2001-2007, the Mexican states receiving relatively more remittances witnessed downward corruption trends.…”

supporting

confidence: 59%

“…2 While a few studies have provided evidence at the country or region level (Abdih et al 2012;Beine and Sekkat 2013;Berdiev et al 2013;Tyburski 2012), to the best of our knowledge only one study has provided household-level evidence on this question: Höckel et al (2015) find that migrant households are less likely to make informal payments to teachers in Moldova. While our conclusions are in congruence with Höckel et al (2015), we expand the exploration of the corruption-migration link at the household 1 See, for example, Bologna and Ross (2015), Johnson et al (2011) and (Méon and Sekkat 2005) for the detrimental effects of corruption on entrepreneurship and economic growth.…”

Section: Introductionmentioning

confidence: 99%

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Does emigration reduce corruption?

Ivļevs

King

2017

Public Choice

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We study the effects of emigration on bribery experience and attitudes towards corruption in the migrants' countries of origin. Using data from the Gallup Balkan Monitor survey and instrumental variable analysis, we find that having relatives abroad reduces the likelihood of bribing public officials, renders bribe-taking behavior by public officials less acceptable, and reduces the likelihood of being asked for bribes by public officials. Receiving monetary remittances does not change the beneficial effects regarding bribe paying and attitudes toward corruption; however, remittances counteract the beneficial effect on bribe solicitations by public officials. Overall, our findings support the conjecture that migration contributes to the transfer of norms and practices from destination to source countries.

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supporting

confidence: 59%

Section: Introductionmentioning

confidence: 99%

Does emigration reduce corruption?

Ivļevs

King

2017

Public Choice

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“…Singer (2010 finds that inflowing remittances affect exchange-rate regimes, and hence provides evidence that policy in receiving countries is responsive to incoming remittances. Moreover, recent research demonstrates that remittances also have detrimental effects on the institutional quality of receiving countries ), as they can weaken governance by increasing levels of corruption (Ahmed 2012;Ahmed 2013;Berdiev et al 2013) and crowd out public spending on education and health (Ebeke 2012).…”

Section: Relevant Literaturementioning

confidence: 99%

“…These large monetary inflows affect microand macroeconomic outcomes in the receiving countries. For example, the literature has demonstrated that remittances affect the quality of governance (Ahmed 2012;Ahmed 2013;Berdiev et al 2013), financial sector development (Giuliano and Ruiz-Arranz 2009;Aggarwal et al 2011), exchange rate regimes (Singer 2010), international competitiveness (López et al 2008;Acosta et al 2009) and schooling decisions (Edwards and Ureta 2003;Alcaraz et al 2012;Ambler et al 2015). 1 Despite their enormous importance, little research exists on the relevance and impact of inflowing remittances for public finances of receiving countries.…”

Section: Introductionmentioning

confidence: 99%

Remittances and public finances: Evidence from oil-price shocks

Asatryan

Bittschi

Doerrenberg

2017

Journal of Public Economics

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Remittances and Public Finances: Evidence from Oil-Price Shocks * Zareh Asatryan Benjamin Bittschi Philipp DoerrenbergMarch 3, 2016 AbstractWe study the effect of inflowing remittances -a major source of capital for many countries -on tax-revenues and tax-policy. Instrumenting remittances with changes in the oil-price interacted with a country's distance to oil-producing countries, we find that remittances have a large positive effect on VAT revenues but no effect on income-tax revenues. This suggests that remittances often escape the income tax but can be taxed via consumption. We further show that tax policy is responsive to shocks in incoming remittances: remittances make the adoption of VAT-systems more likely, and they lead to lower VAT-rates and higher income-tax rates.JEL Classification: F24, H20, O23.

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“…For example, a stable polity with enforceable rule of law are prerequisite for a favourable macroeconomic environment which can increase remittances as migrants re-allocate their savings between host and home countries for investment. Despite these positive effect, there exist evidence that higher remittances could have deleterious consequence for institutional quality (Abdih et al, 2012;Berdiev et al, 2013). Abdih et al (2012) in particular shows that access to remittances makes government corruption less costly for domestic households to bear, and hence such corruption is likely to increase, as government free-ride and appropriate for its own consumption rather than to the provision of public goods.…”

mentioning

confidence: 99%

Migrants' Remittances, Governance and Heterogeneity

Effiong

Asuquo

2017

International Economic Journal

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This paper investigates the effect of governance on remittances with specific focus on accounting for heterogeneity in the relationship. Using nonparametric kernel methods that are robust to arbitrary forms of non-linearity, heterogeneity and model specification, and six governance measures from the World Governance Indicators (WGI), the relationship is analysed for 109 countries for the period 1996-2014. The findings show that all six measures: voice and accountability, political stability, government effectiveness, regulatory quality, rule of law and control of corruption are significantly related with remittances. Moreover, the relationship is highly nonlinear and heterogeneous across countries or regions, and time. In addition, specific aspects of governance quality matter differently for remittances across each regional groupings. Hence, there is the need for country-specific rather than a one-size fits all governance reform agenda.

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Remittances and corruption

Cited by 74 publications

References 24 publications

Does emigration reduce corruption?

Does emigration reduce corruption?

Remittances and public finances: Evidence from oil-price shocks

Migrants' Remittances, Governance and Heterogeneity

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