A Theory of Workers' Remittances with An Application to Morocco
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
This paper provides a model on how altruism, "attachment" to the home country, and portfolio diversification may act as potential motives behind workers' remittances. It shows that the level of workers' remittances depends on how great are their degrees of altruism and "attachment" to their home country, and should also depend on interest rate differentials between the home country and the country of residence if portfolio diversification motives are significant in the decision to remit. The model is applied to Morocco using co-integration techniques. The paper then discusses the stability of remittances in Morocco and the policy implications in light of the empirical findings.
Series:
Working Paper No. 2004/194
Subject:
Balance of payments Consumption Income Labor National accounts Outward remittances Remittances Wages
English
Publication Date:
October 1, 2004
ISBN/ISSN:
9781451859898/1018-5941
Stock No:
WPIEA1942004
Pages:
35
Please address any questions about this title to publications@imf.org