A Theory of Workers' Remittances With An Application to Morocco

 
Author/Editor: Bouhga-Hagbe, Jacques
 
Publication Date: October 01, 2004
 
Electronic Access: Free Full text (PDF file size is 442KB).
Use the free Adobe Acrobat Reader to view this PDF file

 
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
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. 04/194
Subject(s): Salary remittances | Morocco | Economic models

Author's Keyword(s): Morocco | remittances | altruism | portfolio diversification | co-integration
 
English
Publication Date: October 01, 2004
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA1942004 Pages: 34
Price:
US$15.00 (Academic Rate:
US$15.00 )
 
 
Please address any questions about this title to publications@imf.org