Remittances and Portfolio Values: An Inquiry using Immigrants from Africa, Europe, and the Americas

Using a recent Spanish database, we show that remittances respond to cross-country differences in portfolio values, behavior consistent with immigrant’s access to trans-national networks. Responsiveness to portfolio variables is found to persist regardless of education level. There are, however, differences in the portfolio variables to which immigrants respond, as we would expect given migrants’ diverse backgrounds, region of origin, and motive for emigrating. Remitting patterns are found to change with the length of migration spells suggestive that remittances sent for portfolio motives become more likely as the immediate needs of home family are addressed and asset accumulation becomes more important.