ON THE RELATIONSHIP BETWEEN ASSET INEQUALITY AND INTERNATIONAL REMITTANCE
Journal Title: Asian Journal Social Sciences & Humanities - Year 2018, Vol 7, Issue 1
Abstract
This study empirically examines whether initial asset distribution affects the amount of international remittance in home country. Using cross-country evidence, it is found that a country’s initial asset inequality is negatively and significantly associated with the amount of remittance without the model specifications. The plausible explanation is that migration is mainly motivated by the level of information about prospective opportunities in foreign countries, and hence migration involves costs and risks of failure. This implies that the worse of initial asset inequality with the majority of the poor results in a negative association between asset inequality and international remittance. Since the poor people cannot bear the costs and/or risks of migration.
Authors and Affiliations
Fatima Satter Lekhe, Jinyoung Hwang
Keywords
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