Journal Article

Migrant Transnationalism and the Choice of Transfer Channels for Remittances: The Case of Moldova

Authors

  • Siegel
  • M.
  • Lücke
  • M.
Publication Date

We estimate a multinomial logit model to explain the choice of transfer channel (formal services vs. informal operators or personal transfers) by 1139 pairs of migrants and recipients of remittances in Moldova in 2006. Explanatory variables include socioeconomic characteristics of the migrant and other household members, the pattern of migration (destination country, legal status, duration) and financial information (average amount and frequency of payments). Key reasons not to use a formal transfer channel include an emphasis on low transfer cost (rather than speed, convenience, or security), a migrant’s irregular legal status in the host country, and short migration spells.

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Info

JEL Classification
F22, F24, O16

Key Words

  • financial sector development
  • Geldtransfers
  • migration
  • Moldova
  • money transfer operator
  • remittances
  • transfer channel