Exploring the drivers of remittance flows to Vietnam in the context of globalization: Evidence from a survey of Vietnamese immigrants

Duong Minh Ngo ,Phuong Dung Hoang ,Norbert Bozsik

doi:10.24294/jipd9390

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Exploring the drivers of remittance flows to Vietnam in the context of globalization: Evidence from a survey of Vietnamese immigrants

Duong Minh Ngo

Phuong Dung Hoang

Norbert Bozsik

Journal of Infrastructure Policy and Development 2024, 8(16), 9390; https://doi.org/10.24294/jipd9390

Submitted：29 Sept 2024

Accepted：11 Nov 2024

Published：27 Dec 2024

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Abstract

This study examines the microeconomic determinants influencing remittance flows to Vietnam, considering factors such as gender (SEX), age (AGE), marital status (MS), income level (INC), educational level (EDU), financial status (FS), migration expenses (EXP), and foreign language proficiency (LAN). The study analyzes the impact of these factors on both the volume (REM_VL) and frequency of remittance flows (REM_FR), employing ordered logistic regression on survey data collected from Vietnamese migrants residing in Asia, Europe, the Americas, and Oceania. The estimations reveal that migrants’ income, age, educational level, and migration costs significantly positively influence remittance flows to Vietnam. Conversely, the financial status of migrants’ families in the home country negatively impacts these flows. Gender and migration costs primarily influence the frequency of remittance transfers, but they do not have a significant effect on the volume of remittances. Although foreign language proficiency was introduced as a novel variable of the models, it does not demonstrate any significant impact in this study. Furthermore, the survey data and regression estimates suggest that two primary motivations drive remittances to Vietnam: altruistic motives and implicit loan agreements. This research contributes to a deeper understanding of remittance e behavior, particularly in the context of Vietnam’s status as a major labor exporter. The findings provide valuable insights for policymakers and researchers seeking to optimize remittance flows and their impact on the Vietnamese economy. By understanding the complex interplay of factors influencing remittance behavior, policymakers can design effective strategies to support migrants and encourage increased remittance inflows, ultimately contributing to economic development and poverty reduction.

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References

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