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.
- Language
-
Englisch
- Bibliographic citation
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Series: Economics Discussion Papers ; No. 2015-12
- Classification
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Wirtschaft
International Migration
International Finance: General
Macroeconomic Analyses of Economic Development
- Subject
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remittances
geographical distance
transaction cost
financial services
Pakistan
- Event
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Geistige Schöpfung
- (who)
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Ahmed, Junaid
Martínez-Zarzoso, Inmaculada
- Event
-
Veröffentlichung
- (who)
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Kiel Institute for the World Economy (IfW)
- (where)
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Kiel
- (when)
-
2015
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Ahmed, Junaid
- Martínez-Zarzoso, Inmaculada
- Kiel Institute for the World Economy (IfW)
Time of origin
- 2015
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Transfers in the gravity equation: The case of foreign aid
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Foreign Remittances, Foreign Direct Investment, Foreign Imports and Economic Growth in Pakistan: A Time Series Analysis
The link between international remittances and private interhousehold transfers
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