An Empirical Analysis of the Time Pattern of Remittances and Tongan Migrants in New Zealand

Rukmani Gounder ()
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Rukmani Gounder: School of Economics and Finance, Massey University

No 1801, Discussion Papers from School of Economics and Finance, Massey University, New Zealand

Abstract: Altruistic motivation of sending remittances is a decentralised decision of the migrants. A phenomenon known in the literature as remittances decay hypothesis suggests that the pattern of remittances follows an inverted U shape. We examine whether remittances have declined based on the length of absence of Tongan migrants in New Zealand (NZ). Results from a survey analysis for 309 households indicate that at the early stages of migration remittances increase and it declines over the length of stay in NZ. The time period at which remittances reach the maximum point after which it starts to decline is about 17 years.

Keywords: Microeconomic Behaviour; Remittances; Decay Hypothesis; Migration; Tonga (search for similar items in EconPapers)
JEL-codes: D01 F22 F24 O15 O56 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2018
New Economics Papers: this item is included in nep-mig and nep-war
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Persistent link: https://EconPapers.repec.org/RePEc:mas:dpaper:1801

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