Istituto di Economia Internazionale - A Theoretical Model of Remittances with Applications

Recent Articles

Read more about our latest published articles.

Review’s Archive

Corresponding Author:
Moawia Alghalith, Department of Economics, The University of the West Indies, Port of Spain, Trinidad and Tobago

Coauthors:
Samantha Chris Roach, Department of Economics, The University of the West Indies/College of Science and Technology, Arts and Applied Science of Trinidad and Tobago, Port of Spain, Trinidad and Tobago

A Theoretical Model of Remittances with Applications

Volume 69 - Issue 2, May 2016
(pp. 113-120)
JEL classification: F3, E6
Keywords: Remittances, Health, Education, Trinidad and Tobago, St. Lucia

Abstract

In this paper, we provide a theoretical model of remittances. In doing so, we provide several unique formulas using Taylor’s Theorem to measure the impact of cash remittances on health and education. We then empirically tested the impact of cash remittances on health and education to the Caribbean countries of St. Lucia and Trinidad and Tobago using nonlinear least squares to estimate the parameter coefficients.

The results of the model suggest that remittances impact health and education in both countries. While the impact is positive in St. Lucia for both health and education, it is negative in Trinidad and Tobago. The positive impact on health and education in St. Lucia may perhaps be attributed to the lack of revenue allocated to health care and education. On the other hand, the negative impact on education in Trinidad and Tobago may be attributed to the provision of free education for citizens of Trinidad and Tobago.

Read the full article

Download the article in PDF format to read and print.

Bibliography

Bansak, C., B. Chezum and A. Giri (2015), “Remittances, School Quality, and Household”, IZA Journal of Migration, December, 4:16.

Hanson G. and C. Woodruff (2003), “Emigration and Educational Attainment in Mexico”, NBER Working Paper No. 1-38.

Haroon, J. (2012), “High Inflation has Positive Impact on Remittance Inflow”, The Financial Express, April 4, .

Joseph, S., R. Hosein and M. Franklin (2010), “The Development Impact of Remittances on the Caribbean, Evidence from St. Lucia and Trinidad and Tobago”, Global Development Studies-Special Issue on the Caribbean, 6(1-2), 183-221.

Jansen, D., D. Vacaflores and G. Naufal (2012), “The Macroeconomic Consequences of Remittances”, ISRN Economics Volume 2012, Article ID 218071.

Kalaj, E.H. (2015), “A Micro-level Analysis of the Effect of Remittances on Health Expenditures: Evidence from Albania”, Mediterranean Journal of Social Sciences, 6(1)S1, 665-673.

Levitt, P. (1997), “Transnationalizing Community Development: The Case of Migration between Boston and the Dominican Republic”, Nonprofit and Voluntary Sector Quarterly, 26(4), 509-526.

López Córdova, E. (2004), “Globalization, Migration and Development. The Role of Mexican Migrant Remittances”, Mimeo, Inter-American Development Bank.

McKenzie, D.J. and N. Hildebrandt (2005), “The Effects of Migration on Child Health in Mexico”, Economia, 6(1), 257-289.

McKenzie, D. and H. Rapoport (2011), “Can Migration Reduce Educational Attainment? Evidence from Mexico”, Journal of Population Economics, 24(4), 1331-1358.

Parinduri, R. and S.M. Thangavelu (2010), “Are Migrant Households Better-off than Non-Migrant Households? Micro-level Evidence from Indonesia”, University of Nottingham, Working Paper, Preliminary Draft.

Yang, D. and C. Martinez (2006), Remittances and Poverty in Migrants’ Home Areas: Evidence from the Philippines , in C. Ozden, M. Schiff (Eds), “International Migration, Remittances and the Brain Drain”, World Bank: Washington, DC.

Recent Articles

Review’s Archive

A Theoretical Model of Remittances with Applications

Abstract

Read the full article

Bibliography

Register your account

Authors’ login

Institute for International Economics of the Genoa Chamber of Commerce

Institute for International Economics
of the Genoa Chamber of Commerce