Remittances for Economic Development: the Investment Perspective

Thanh Le

No 3, Working Papers from Development and Policies Research Center (DEPOCEN), Vietnam

Abstract: Based on the economic theory of the family, this paper constructs a model of remittances where the migrant, besides sending money to his family, also invests in his home country. The investment is looked after by a family member in return for some monetary compensation. The model focuses on two different cases: state-contingent transfers (transfers are tied to investment outcomes) and fixed transfers (transfers are mainly of altruistic motive). As the migrant derives utilities from consumption, his consumption-investment decision is driven by preferences and future investment prospects. The transfers are to increase with both business encouraging and income compensatory effects.

Keywords: remittances; investment; financial development; income transfer (search for similar items in EconPapers)
JEL-codes: D31 J61 O15 O16 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Related works:
Journal Article: Remittances for economic development: The investment perspective (2011)
Working Paper: Remittances for Economic Development: the Investment Perspective
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Persistent link: https://EconPapers.repec.org/RePEc:dpc:wpaper:0311

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