The New Economics of Labour Migration (NELM):Econometric Analysis of Remittances from Italy to Rural Bangladesh Based on Kinship Relation

Abstract

This paper analysed the household head relation to the migrant and remittances determinants among ten villages on the remittances receiving households in rural Bangladesh. The household survey data from Bangladesh for the period of July to December, 2013, to analyse determinants of remittances at the left behind household members. Rather than multilevel models, use a three stages backward regressions elimination estimation process and build up econometric best fit model of remittances, which helps us the focus the analysis on the explanation of remittances determinants heterogeneity in micro-economic level of studies. The empirical findings suggest that the household head relation to the migrant is one of the strong determinants of remittances as well as other variables. In addition, the household head relation to migrant such a father, mother, brother and wife also have different influential factors while the most common variable as number of visit by the migrant at the origin is strongly associates with all the relationship to the migrant although level of significance has slightly discrimination. Overall, the findings suggests that the age of migrant are strongly associates with father, wife and brother relation of the household head while the age of household head as father and wife. The investment in housing development strongly associates wife, brother and mother household head whereas household living expenses with father and wife. Individual determinants such as household income, land and marital status of the migrant are strongly associates with father, wife and mother household head respectively