Financial Effects of the International Migration in Europe: Modelling the Decision to Remit

Abstract

This paper analyzes the behaviour of Central and Eastern European migrants regarding money remitting to their country of origin and is based on data provided by the National Immigrant Survey of Spain. In order to analyze the impacts of migrants’ demographic and economic characteristics on remitting behaviour, the variables employed in the econometric model referred to individual factors, factors that evaluate the migrant’s links with the native country and those that account for the degree of migrant’s integration in Spain. The factors showing a stronger attachment to relatives and the country of origin have a positive impact on the decision to remit and on the remitted amounts, while the factors that point to the integration of the migrant into Spanish society have a negative and smaller impact on the remitting decision.

Key words: International migration, Remittances, Two-part model, Transition countries, Central and Eastern Europe.
JEL: F22, I31, R23.