Motivations for Remittances : A Study of Rural Bangladesh Migrants in Italy

The aim of the paper is to highlight the variables that determine the propensity to receive remittances and the amount of remittances by households in rural Bangladesh. The empirical model incorporated the determinants of remittances in terms of observed migrant and household characteristics that are assumed to capture the underlying motives of remitting suggested by existing theories of remittances. This paper explores the motives that account for the receipt of remittances across rural households in Bangladesh who have migrants in Italy. Unlike most of the existing literature, the research question from the perspective of the recipient household and use it to interpret the determinants/motivations of remittances. The results show that a combination of household and migrant characteristics and some community level variables are the key elements in explaining the remittance behaviour in Bangladesh. Drawing from these estimates, this study conclude that altruism investment and kinship are the three main motives behind remittance flows to Bangladesh and both community variables (NELM and presence of networks in the host country) are strong determinants of the likelihood of receiving remittances by households