Bilateral Determinants of International Remittance Flows: Informality and the Channel-versus Size-Effect
Résumé
The main concern of this paper is to investigate the interplay between sending and recipient country characteristics that determine remittance flows and to pay particular attention to the transfer channel. The main findings of the paper confirm that there are indeed differences between factors that change the volume of remittances and factors that change the delivery channel. High levels of Social Capital, as well as a well-developed logistic infrastructure and a large shadow economy will increase the share of remittances flowing through informal channels. Understanding the factors that cause the discrepancy between recorded and actual remittances may help to reconcile the conflicting evidence on the relationship between remittances and economic growth, as well as other factors of development. Additionally, if policy makers want to promote remittances as a bottom-up development policy (no matter if they are official or unrecorded), they cannot only look at cost-factors decreasing the volume of remittances but how they affect informal flows, too.
Domaines
Economies et finances
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