Determinants of remittances in South Africa

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Show simple item record Biyase, Mduduzi Tregenna, Fiona 2016-09-15T14:42:45Z 2016-09-15T14:42:45Z 2016-08
dc.identifier.citation Biyase, M., Tregenna, F. (2016). Determinants of remittances in South Africa. Cape Town: SALDRU, University of Cape Town. SALDRU Working Paper Number 176/ NIDS Discussion Paper 2016/3.
dc.identifier.isbn 978-1-928281-37-5
dc.description.abstract This paper analyses household‐level determinants of the probability and level of domestic remittances in South Africa over the period 2008 to 2014‐2015. We exploit all four waves of the National Income Dynamics Survey (NIDS) data to analyse the determinants of remittances in a panel setting using random‐effects Tobit, Heckman selection, and two‐part model approaches. The panel nature of this data allows us to incorporate individuals’ unobserved time‐constant characteristics (or unobserved heterogeneity) in the models, a step that enriches the analysis and yields more accurate results than if we were to use only cross‐sectional analysis. It also allows us to incorporate information about the dynamics of remittance behaviour for the same households. However, data availability restricts the analysis to determinants associated with the recipient households. We find the determinants of the probability of remitting to be non‐identical to the determinants of the level of remittances. Determinants of both include the age, race, education level, and employment status of the household head, and the income and the type of area of the household. The gender of the household head and the size of the household are also important determinants, but appear to have a positive effect on the probability of remitting, yet a negative effect on the amount remitted. These results shed light on the factors that affect whether or not families receive remittances and, if they do, how much. en_US
dc.description.sponsorship Mduduzi Biyase: Corresponding Author. Lecturer, Department of Economics and Econometrics, University of Johannesburg Fiona Tregenna: South African Research Chair in Industrial Development, and Professor, Department of Economics and Econometrics, University of Johannesburg Acknowledgements: Funding for this research from the Department of Planning, Monitoring and Evaluation is gratefully acknowledged. en_US
dc.language.iso en en_US
dc.relation.ispartofseries Saldru Working Paper;176
dc.subject Remittances en_US
dc.subject Migration en_US
dc.subject National Income Dynamics Study (NIDS) en_US
dc.subject South Africa en_US
dc.title Determinants of remittances in South Africa en_US
dc.type Working Paper en_US

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