Do Migrants' Remittances Decline over Time? Evidence from Tongans and Western Samoans in Australia
Date
1998
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University of Hawai'i Press
Center for Pacific Islands Studies
Center for Pacific Islands Studies
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Abstract
There is concern that Pacific Island economies dependent on remittances of
migrants will endure foreign exchange shortages and falling living standards as
remittance levels fall because of lower migration rates and the belief that
migrants’ willingness to remit declines over time. The empirical validity of the
remittance-decay hypothesis has never been tested. From survey data on Tongan
and Western Samoan migrants in Sydney, this paper estimates remittance functions
using multivariate regression analysis. It is found that the remittance-decay
hypothesis has no empirical validity, and migrants are motivated by factors other
than altruistic family support, including asset accumulation and investment back
home.
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Keywords
migration, regression, remittances, sample survey, Tonga, Western Samoa, Oceania -- Periodicals.
Citation
Brown, R. P. C. 1998. Do Migrants' Remittances Decline over Time? Evidence from Tongans and Western Samoans in Australia. The Contemporary Pacific 10 (1): 107-51.
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