DEPP working paper

This Working Paper is part of the Development Economics and Public Policy series

Determinants of Remittances: The Case of the South Asian Community in Manchester

Thankom Arun and Hulya Ulku.

Abstract

This paper investigates the remitting behaviour of South Asian community using new data from 700 Indian, Pakistani and Bangladeshi households in Manchester. The findings show that the remittances of South Asian community in Manchester are determined by income, social and financial linkages to the home country, the recipient’s economic status, and the use of remittances for education and business. There is no tangible evidence that the use of remittances for basic needs and consumption has a significant impact on the size of remittances. In addition, while the remittances of permanent migrants are determined by the standard variables cited above, remittances of temporary migrants are primarily driven by their use for savings, education and loan payments.

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