Project (M.P.P.) - Simon Fraser University, 2006. / Theses (Master of Public Policy Program) / Simon Fraser University. Also issued in digital format and available on the World Wide Web.

This dissertation studies migration and remittances through a macroeconomic framework. In the first chapter, I compare the impact of national and regional borders on the migration decisions of agents. Migration between regions within a country is observed to be higher than migration between countries; moreover, both types of migration respond similarly to differences in economic opportunities. These observations are analyzed with the aid of a symmetric two-country dynamic general equilibrium model with labor mobility. The model is solved using dynamic programming and estimates of the latent cost of crossing borders are obtained through the method of simulated moments. The results show that the mean moving cost associated with crossing an international border is more than twice that of crossing a regional border. One important consequence of this high cost is that the mere presence of a national border decreases aggregate welfare by about 0.15% in terms of annual consumption for countries such as Sweden and Denmark. In the second and third chapters, I analyze how remittances by emigrants to their home countries affect welfare, consumption, savings, investment and the structure of production between traded and non-traded sectors in developing economies. For both these chapters, I solve a macroeconomic model with an endogenous remittance decision. However, while the second chapter considers remittances driven by investment or savings motives, the third chapter considers altruistic remittances. / text

Thesis (Ph. D.)--University of Texas at Austin, 2008. / Vita. Includes bibliographical references.

Med anledning av att arbetslösheten är hög bland invandrare och att de i stor utsträckning startar företag är det intressant att se hur invandrarföretagare finansierar uppstarten av sin verksamhet. Av den anledningen är det också intressant att förstå vad som ligger bakom den valda finansieringsformen. Många invandrare som vill starta företag i Sverige stöter på problem tidigt i processen då de ofta blir diskriminerade av banker genom att inte bli beviljade lån i samma utsträckning som svenskfödda. Dessa begränsningar i tillgång till kapital via formella vägar öppnar upp för mer informella alternativ. En lösning skulle kunna vara att anförskaffa sig kapital via släkt och vänner som är kvar i hemlandet, med så kallade reverse remittances. Genom intervjuer med invandrarföretagare uppdelade i två olika grupper (en grupp som helt eller delvis använt reverse remittances som finansiering och en grupp som använt banklån och/eller andra finansiella medel) studerades valet av finansieringsform. Även sambandet mellan att ta emot och själv skicka remitteringar observerades. Då större delen av de invandrarföretagare som intervjuades inte hade varit i kontakt med banken innan finansieringsformen bestämdes finns ingenting i den här studien som tyder på att finansiering med reverse remittances beror på diskriminering hos bankerna. Den här studien visar istället att de främsta anledningarna till att reverse remittances används som finansiering är att det uppfattas som ett tillgängligt alternativ då invandrarföretagarna ingår i transnationella nätverk som byggs på en hög grad av tillit. Skillnaderna mellan de två urvalsgruppernas mönster i huruvida de själva remitterar eller inte visar sig i den här studien vara näst intill obefintliga. Istället beror remitteringsmönstret i båda urvalsgrupperna på kulturen inom de transnationella nätverken, en stark relation till remitteringsmottagaren och ett uttalat behov av pengar. Även om det finns antydningar på att företagarna som helt eller delvis finansierats med reverse remittances har något större benägenhet att själva remittera har studien inte kunnat se något tydligt samband mellan att ta emot remitteringar och själv remittera. / Given that the labor market for immigrants in Sweden has high unemployment and that immigrants to a large extent start businesses, makes it interesting to see how they finance the start-up. It also makes it interesting to try to understand the reasons that may lay behind the choice of funding source. However, many immigrants who want to start a business in Sweden encounter problems early in the process since banks tend to discriminate immigrants and not grant them loans to the same extent as to those born in Sweden. The constraints in access to capital through formal options open up for more informal alternatives. One solution could be to go through friends and family who still live  in their country of origin, through so-called reverse remittances. The reason behind the choice of funding source was studied through interviews with immigrant entrepreneurs divided into two groups; one group that received reverse remittances as funding source and one group that used bank loans and/or other funding sources. Additionally this study also looked at the linked relationship between entrepreneurs receiving and sending remittances. Since the greater part of the immigrant entrepreneurs that where interviewed had not been in contact with the bank before choosing source of funding, discrimination cannot be said to be the reason behind funding by reverse remittances. This study shows that the main reason for the use of reverse remittances rather is because the immigrant entrepreneurs belong to strong transnational networks built up by a high level of trust. No specific differences in the remittance pattern between the two sample groups have been found. It is rather the culture within the transnational network, strong ties to the remittance receiver and an expressed need for money that seem to decide whether immigrant entrepreneurs send remittances or not. This study has not either been able to point out whether there is a relationship between receiving and sending remittances among immigrant entrepreneurs in Sweden, apart rom some insinuations that the entrepreneurs funded by reverse remittances tend to remit to a slightly larger extent.

Central America and Mexico are characterized by high levels of poverty. In response, labor migration has emerged as a major strategy among families through the sending of earnings (or remittances) to households back home. Large amounts of remittances are sent, with over $13 billion to Central America and more than $23 billion to Mexico in 2011. While remittances to Mexico have been studied extensively, much less is known about the factors associated with remittances to Central America. This mixed methods study examined remittance sending and use patterns of Mexican and Central American labor migrants to the United States. Data on remittance behaviors were drawn from two major surveys, the Latin American Migration Project and Mexican Migration Project. Quantitative analyses were conducted using multiple regression to examine family-level predictors for the decision to engage in labor migration, whether remittances were sent, amount of remittances sent, and the purposes for remitting. Qualitative analysis involved focus group interviews of Mexican and Central American migrants in the United States who currently remit to their families back home. These interviews helped to discern the meaning of remittances for migrants and their families. The quantitative results suggest that top purposes for remitting include food and daily maintenance, education, health, and housing. Additionally, remittance sending patterns differed by region of origin. Mexican migrants were more likely to send remittances and to remit larger amounts. Additionally, individuals from Mexico had increased odds of sending funds for housing expenditures while Central Americans had greater odds of remitting for education and consumer goods. According to respondents who participated in the qualitative study, increasing costs of food, health, and education coupled with limited employment options contribute to a reliance on labor migration in both regions. For many, remittances have emerged as an essential source of income for economic wellbeing and even survival. A key implication for social work of this study on the larger population patterns on remittances is that at the family level, migrants carry a dual responsibility to settle into a new country while also maintaining the economic wellbeing of family left behind. / text

Thesis advisor: Scott Fulford / Thesis advisor: Mathis Wagner / This dissertation consists of three chapters. The first chapter investigates how the historical development of Protestantism may contribute to explain current literacy disparities in India. Combining information about the spatial distribution of Protestant missions in India at the end of the nineteenth century with contemporary district-level data, I find a strong long-term relationship between the historical exposure to Protestant missions and current literacy. I then verify that this relationship is not driven by unobserved characteristics that may affect both current literacy outcomes as well as the missionaries' location decisions. The second chapter exploits local variations in the historical exposure to Christianity to explain current differences in individual HIV-related sexual behaviors in Africa. I find that exposure to the presence of Catholic missions at the end of the nineteenth century is associated with a decrease in current HIV infection rates. I also examine whether historical Catholic and Protestant missions have a different impact on individual sexual behaviors. I find that Catholicism, while having a small negative impact on the propensity of condom use, is positively associated with the adoption of safer forms of sexual behavior (pre-marriage sexual abstinence, delay of first sexual intercourse and marital faithfulness). Finally, in the third chapter I examine the impact of international migration and remittances on the labor supply of the family members left behind. Using data from Albania, I find that international migration has a significant impact on labor force participation. Remittances receipts from abroad determine a substitution effect away from the labor market, particularly for the female population. / Thesis (PhD) — Boston College, 2014. / Submitted to: Boston College. Graduate School of Arts and Sciences. / Discipline: Economics.

In spite of the prevalence of rural-urban interactions in developing countries, much remains to be learnt about their welfare impacts. This thesis extends the discussion on rural-urban linkages by examining – for Ghana – two of the main forms of such interactions: migration and remittance flows. The study explores factors influencing migration and remittance flows, and also evaluates the impacts of these linkages on poverty and consumption welfare, using data from the 1998/99 Ghana Living Standards Survey. A key feature of the analyses is the construction of counterfactual scenarios and the application of a methodology that adjusts for selectivity bias.

Remittances were calculated to be approximately $318 billion in 2007, which is an increase of three times the amount of $102 billion in 1995, having these funds to become the second largest type of flows after foreign direct investment. The South-Eastern and Eastern-European countries welcomed 12% of the world’s remittances inflows in 2007, totalling $37 billion. The impact of remittances on financial development of the South-Eastern and Eastern-European countries for the period 1994 – 2007 is studied and it is examined whether these funds contribute to increasing the aggregate level of deposits and credits intermediated by the local banking sector. Financial development is measured in two ways, either as bank deposits or as bank credits to private investors. In order to analyze this effect panel data analysis is performed. Fixed effect regressions are performed to test for the effect of remittances on bank deposits and bank credits to private investors. The findings indicate that remittances have a robust positive effect on promoting financial development in South-Eastern and Eastern-European countries. It is observed that the effect on bank deposits is less robust than the effect on bank credits to private investors.

Remittances significantly affect recipient households’ behavior. Using data from the Jamaican Survey of Living Conditions and the Jamaican Labor Force Survey ( 2001-2007), this dissertation explores the effects of remittances on labor market participation and household expenditures. Jamaica’s proximity to the United States and its diaspora of educated individuals shapes an economy largely dependent on remittances, thus providing an interesting case study. First, we investigate whether remittances alter labor market behavior of married women in remittance-receiving households located in Jamaica. Remittances, the wife’s education, and wages are all treated as endogenous when estimating labor market participation and hours worked. Unlike other studies, we find that after instrumenting for remittances, the outside income has no significant effect on the supply of labor. Second, we assess the extent that remittances alter the consumption pattern of recipient households in Jamaica. Classical theory predicts that total income affects household consumption decisions, but developments in behavioral economics suggest otherwise. The disaggregation of income streams and consumption expenditures provide us with unique insight into household behavior and in particular, spending on items such as food, schooling, and vices. Using Engel curve estimation and the two-part fractional response models, we find that the source of income significantly affects the shares of income spent in specific consumption categories. Recipients, for example, generally spend more of their income on schooling and home production and less at the grocery store. These findings suggest important implications should government look to tax or restrict the flow of remittances.

Summary: Qualitative interviews were conducted to grandmothers and children living in transnational families in the Philippines. The study aims to examine how they experience their life situation and how they find strategies to cope with difficulties that may appear in transnational family life. Findings: The grandmothers experience difficulties with ageing and health problems in their role as caregivers, and the children experience difficulties with new responsibilities such as household chores, taking care of younger siblings and manage school. For both respondents the financial benefits with having a family member working abroad is the most important. Applications: The results are discussed in the context of globalization, transnational families and gender.