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MOTIVATING FACTORS OF REMITTANCES INFLOWS INTO DEVELOPING ASIAN ECONOMIES

HRUSHIKESH MALLICK

Centre for Development Studies (CDS), Trivandrum 695011, Kerala, India

E-mail Address: hrushi_isec@yahoo.co.in

E-mail Address: hrushi@cds.ac.in

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and

MANTU KUMAR MAHALIK

Department of Humanities and Social Sciences, National Institute of Technology (NIT), Rourkela-769008, Odisha, India

E-mail Address: mantu65@gmail.com

E-mail Address: mahalikm@nitrkl.ac.in

Corresponding author.

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https://doi.org/10.1142/S0217590815500630Cited by:2 (Source: Crossref)

Abstract

Considering 11 major Asian migrant sending countries during 1975–2012, the study explores the factors that motivate migrants to remit their earnings to home countries. Using panel regressions, it finds that it is primarily the growth rate and interest rate differentials between the home and host, the household consumption and financial sector development at home along with per capita income of host countries which lead to remittances inflows. It concludes that it is not only the altruistic (or consumption) and higher interest income motives; but also the patriotic motives reflected from significant impact of past remittances, are crucial factors of such flows.

Keywords:

JEL: E21, E51, F22, F24

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