Political risk, institutional quality and financial drivers of diaspora remittances

Mohamed Hamadeh, Roy Khoueiri, Nicholas Bitar and Ribal Rizk

Review of Accounting and Finance, 2025, vol. 24, issue 5, 714-731

Abstract: PurposeThis study aims to examine how political risk factors influence expatriate remittance flows, focusing on governance and corruption in shaping financial transfers.Design/methodology/approachUsing panel data from 1987 to 2018, regression analysis explores the impact of 12 political risk factors on remittance inflows from four Gulf Cooperation Council countries.FindingsPolitical risk significantly influences remittance flows. Corruption increases remittances, driven by altruism, while poor governance reduces them. Key financial indicators also play a role.Research limitations/implicationsAggregate data limits understanding of individual motives. Future studies should include micro-level data for deeper analysis.Practical implicationsThe findings stress the importance of improving governance and financial systems to maintain remittance inflows.Social implicationsReducing corruption and enhancing governance can strengthen socio-economic conditions for families reliant on remittances.Originality/valueThis research uniquely integrates political risk into remittance analysis, offering insights into governance and corruption effects.

Keywords: Corruption; Diaspora impact; Expatriate transfers; Governance; Gulf countries; Lebanese economy; Political Risk; Political Stability; Remittances (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:rafpps:raf-11-2024-0512

DOI: 10.1108/RAF-11-2024-0512

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