Arbeitspapier

Do transfer costs matter for foreign remittances? A gravity model approach

Using bilateral data on remittance flows to Pakistan for 23 major host countries, in the first study of its kind, the authors examine the effect of transaction costs on foreign remittances. They find that the effect of transaction costs on remittance flows is negative and significant; suggesting that a high cost will either refrain migrant's from sending money back home or make them remit through informal channels. This can be better understood in terms of migrant networks and improvements in home and host country financial services. Distance, which has been used in previous studies as an indicator of the cost of remitting, is found to be a poor proxy.

Sprache
Englisch

Erschienen in
Series: Economics Discussion Papers ; No. 2015-12

Klassifikation
Wirtschaft
International Migration
International Finance: General
Macroeconomic Analyses of Economic Development
Thema
remittances
geographical distance
transaction cost
financial services
Pakistan

Ereignis
Geistige Schöpfung
(wer)
Ahmed, Junaid
Martínez-Zarzoso, Inmaculada
Ereignis
Veröffentlichung
(wer)
Kiel Institute for the World Economy (IfW)
(wo)
Kiel
(wann)
2015

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Ahmed, Junaid
  • Martínez-Zarzoso, Inmaculada
  • Kiel Institute for the World Economy (IfW)

Entstanden

  • 2015

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