ISSN 2385-2275 No. 8 - March 2015
Emigration, remittances and corruption experience of those staying behind
ARTJOMS IVLEVS (Corresponding author)
University of the West of England, UK, and IZA This email address is being protected from spambots. You need JavaScript enabled to view it.
ROSWITHA M. KING
Østfold University College, Norway This email address is being protected from spambots. You need JavaScript enabled to view it.
Abstract:
We examine the effects of emigration and remittances on the corruption experience of migrant household members staying in the countries of origin. We hypothesize that the effects of emigration on corruption can be both positive (via migrant value transfer) and negative (via misuse of monetary remittances). Using data from Gallup Balkan Monitor survey in instrumental variable analysis, we find that having relatives abroad reduces the probability of bribing public officials but receiving monetary remittances offsets this beneficial effect. We also find that migrant households, and especially remittance-recipient households, are more likely to be extortion targets for public officials. These findings support both the direct value transfer and the indirect monetary channels of influence.
JEL classification: F22, F24, D73
Keywords: emigration, corruption, institutions, diaspora externalities, Western Balkans.
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