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Are Remittances Conflict-Abating in Recipient Countries?

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Abstract
This paper represents the first attempt to formalise the relationship between remittances inflow and social violence by developing a model which predicts that migrants’ remittances would lead to the reduction of social conflict in the recipient economy under the condition that remittances increase the average product of labour. Using homicides data as an indicator of social violence, we test our model’s prediction. Duly controlling for the endogeneity problem using appropriate instruments, we find that remittances tend to reduce social violence. We perform sensitivity analysis on remittances in the empirical model and find it robust with an unchanged negative sign.

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  • Gazi Mainul Hassan & Joao Ricardo Faria, 2013. "Are Remittances Conflict-Abating in Recipient Countries?," Working Papers in Economics 13/11, University of Waikato.
    • Handle: RePEc:wai:econwp:13/11
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    More about this item

    Keywords

    remittances; international migration; social conflict; homicide; social violence; economic development;
    All these keywords.

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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