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Copyright Universitaet Kiel Feb 1, 2016

Abstract

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.

Details

Title
Do Transfer Costs Matter for Foreign Remittances? A Gravity Model Approach
Author
Ahmed, Junaid; Martínez-Zarzoso, Inmaculada
Pages
1-36A
Publication year
2016
Publication date
Feb 1, 2016
Publisher
Walter de Gruyter GmbH
ISSN
18646042
Source type
Scholarly Journal
Language of publication
English
ProQuest document ID
1765957456
Copyright
Copyright Universitaet Kiel Feb 1, 2016