Ethiopian diaspora And issues of remittances demand and supply factors determining remittances
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Date
2007-04
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A.A.U
Abstract
Remittances, an inextricable facet of migration, are the money that the diaspora sends to family
remaining in the country of origin. The very importance of remittances together with the contributions of
the diasporas is grabbing the minds of policy makers in an effort to increase foreign incomes for the
enhancement of economic development. However, there are different microeconomic factors
Influencing the flows of remittances from both the senders' and recipients' side which this thesis has
made detail studies using econometric model.
From the sender's side the age, educational level and income of the remitter, the number of years the
diaspora stay abroad, the channel used to send remittances and blood relationship of the sender and
recipients are major determinants for the amount and frequency of remittances. on the other hand, the
gender and the reason for spending remittances do not have significant influence.
From the recipient's side the country from which the remittances come, the living status of the remitter,
the income, the number of years the diaspora stay abroad and the sending channel are determining
factors. The family size and income of the recipient household also influence the inflow of remittances.
These illustrations convey the message that in order to multiply the inflow of remittances, particularly
through the formal channel, the factors should be given prior attention and appropriate measures
should be taken in connection to the determinants. The secure flow of resources needs to be assured
together with carefully increasing the number of migrants.
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Keywords
Determining, Factors