Record Details

Do Transfer Costs Matter for Foreign Remittances? A Gravity Model Approach

Harvard Dataverse (Africa Rice Center, Bioversity International, CCAFS, CIAT, IFPRI, IRRI and WorldFish)

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Title Do Transfer Costs Matter for Foreign Remittances? A Gravity Model Approach
 
Identifier https://doi.org/10.7910/DVN/2HNZ2I
 
Creator Ahmed, Junaid
Martinez-Zarzoso, Inmaculada
 
Publisher Harvard Dataverse
 
Description Using bilateral data on remittance flows to Pakistan for 23 major host countries, this is the first study that examines the effect of transaction costs on foreign remittances. The authors find that the effect of transaction costs on remittance flows is negative and significant; suggesting that a high cost will either refrain migrants from sending money back home or make them remit through informal channels. They also find that remittances are facilitated by the existence 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.
 
Subject Social Sciences
remittances
geographical distance
transaction cost
financial services
Pakistan
 
Language English
 
Contributor Werner-Schwarz, Korinna