Are Remittances Conflict-Abating in Recipient Countries?

Gazi Hassan () and Joao Ricardo Faria ()
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Joao Ricardo Faria: University of Texas at El Paso

Working Papers in Economics from University of Waikato

Abstract: This paper represents the first attempt to formalise the relationship between remittances inflow and social violence by developing a model which predicts that migrants’ remittances would lead to the reduction of social conflict in the recipient economy under the condition that remittances increase the average product of labour. Using homicides data as an indicator of social violence, we test our model’s prediction. Duly controlling for the endogeneity problem using appropriate instruments, we find that remittances tend to reduce social violence. We perform sensitivity analysis on remittances in the empirical model and find it robust with an unchanged negative sign.

Keywords: remittances; international migration; social conflict; homicide; social violence; economic development (search for similar items in EconPapers)
JEL-codes: D74 F22 F24 O17 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2013-07-16
New Economics Papers: this item is included in nep-dev and nep-mig
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Persistent link: https://EconPapers.repec.org/RePEc:wai:econwp:13/11

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