Migration, Remittances, and Entrepreneurship: A Seemingly Unrelated Bivariate Probit Approach

Mrika Kotorri, Besnik A. Krasniqi and Marina Dabic ()
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Mrika Kotorri: University of Prishtina 'Hasan Prishtina', Kosovo
Besnik A. Krasniqi: University of Prishtina 'Hasan Prishtina', Kosovo

Remittances Review, 2020, vol. 5, issue 1, 15-36

Abstract: The aim of this paper is to examine the interdependence between the decision to invest in entrepreneurship and the receipt of remittances. Firstly, a conceptual framework is developed within the household utility-maximisation model, wherein households are seen to make decisions on entrepreneurship and remittances simultaneously. Guided by this, the model is specified and estimated, employing the seemingly unrelated bivariate probit model upon a random sample stemming from the Kosovo population census. The findings suggest broad support for the household approach. As expected, the two decisions are simultaneously determined and, while remittances have a positive impact on entrepreneurship, no evidence is found for the statistical importance of migration. Household entrepreneurial behaviour is determined by demographic characteristics, income, relative wealth, education, and type of area.

Keywords: Migration; remittances; entrepreneurship; bivariate probit (search for similar items in EconPapers)
JEL-codes: F22 F24 J60 L26 O15 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:mig:remrev:v:5:y:2020:i:1:p:15-36

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DOI: 10.33182/rr.v5i1.807

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