The Transfer of the Remittance Fee from the Migrant to the Household
The Transfer of the Remittance Fee from the Migrant to the Household
- 세종대학교 경제통합연구소
- Journal of Economic Integration
- 제25권 제3호
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2010.09613 - 625 (13 pages)
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This paper discusses the problem of increasing remittances. It is often argued that the remittance fee needs to be lowered to increase remittances. We show that remittances become larger by increasing the receiving fee whereas they become larger by reducing the sending fee. We also show that, by transferring the sending fee from the migrant to the household, remittances become larger than those without the transfer. It is shown that for this purpose the home country`s government can collect the sending fee from the household as taxes, and to pay it to the migrant as a subsidy.
Ⅰ. Introduction
Ⅱ. The Model
Ⅲ. The Effects of Remittance Fees on Remittances
Ⅳ. Maximizing Remittances through the Transfer
Ⅴ. Concluding Remarks
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