The Decision to Remit: Is it a Matter of Interpersonal Trust?

Kamal Kasmaoui, Farid Makhlouf and Refk Selmi

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Abstract: This article seeks to assess the role of the level of interpersonal trust in a country in the remittance landscape. Using historical data from the 2010-2014 wave of the World Value Survey (WVS) for interpersonal trust, our findings underline the substitution role played by interpersonal trust with remittances. More accurately, remittances tend to drop when the rate of interpersonal trust in the country of origin is high. Overall, a rise in trust is likely to underpin social cohesion, limiting therefore the need for remittances. Potential elements including human capital, cultural factors, the quality of institutions, the financial development and the inequality have been advanced to explain the obtained findings.

Keywords: Interpersonal trust; Remittances; Social capital (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-fdg, nep-pay and nep-soc
Note: View the original document on HAL open archive server: https://hal.science/hal-04075078
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Citations: View citations in EconPapers (1)

Published in Economics Bulletin, inPress

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Journal Article: The decision to remit is a matter of interpersonal trust (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04075078

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