Determinants of Savings and Remittances: Empirical Evidence from Immigrants to Germany

Mathias Sinning ()

No 2966, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper investigates the determinants of migrants' financial transfers to their home country using German data. A double-hurdle model is applied to analyze the determinants of the propensity to send transfers abroad and the amount of transfers. The findings reveal that return intentions positively affect financial transfers of immigrants to their home country. Moreover, while the effect of the household size on migrants' transfers abroad turns out to be significantly negative, remittances are higher if close relatives live in the sending country. Finally, Vuong-tests indicate that the double-hurdle model is the correct specification for the analysis of migrants' savings and remittances rather than the conventional Tobit model usually applied in the literature.

Keywords: international migration; savings; remittances; double-hurdle model (search for similar items in EconPapers)
JEL-codes: C34 D12 D91 F22 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2007-08
New Economics Papers: this item is included in nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (33)

Published - published in: Review of Economics of the Household, 2011, 9 (1), 45-67

Downloads: (external link)
https://docs.iza.org/dp2966.pdf (application/pdf)

Related works:
Journal Article: Determinants of savings and remittances: empirical evidence from immigrants to Germany (2011)
Working Paper: Determinants of Savings and Remittances – Empirical Evidence from Immigrants to Germany (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp2966

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().