Microeconomic Determinants of Privates of Private Inward Remittances to Households in Ghana: a case study

Abstract

This paper examined the microeconomic determinants of inward remittances of migrants to their respective households at home. It looked at the likelihood that a migrant will remit home with regards to the household size, the monthly income of the household, the sex of the migrant, whether the migrant has an immediate family at home, obligation, among other things. Questionnaires were administered to recipients of such remittances. A total of 61 responses were used to determine the likelihood. Logit estimation was then run and the results showed that insurance and exchange were theories explaining the motive to remit. It also found the household size and the number of years of stay of the migrant in the host country to be significant in explaining the likelihood to remit. The conclusion drawn from this paper is that it is important to look at determinants to remit by looking at the actual situation of the country understudy with regards to its social, cultural and traditional settings as well as their economic situations since these factors determine the propensity to travel abroad and hence determining the motive to remit. Nonetheless these findings would serve as a basis and a guide for studying and improving in the alleviation of poverty as well as the development impact of remittances on the countries concerned. It will also serve as literature and a guide for future study.