Giới thiệu tài liệu
This study investigates factors influencing remittance transfers (money sent by foreign migrants to their home country) in Vietnam, and it finds that foreign investment plays a significant role. The study also reveals that economic growth and the rate of urbanization have opposite effects on remittances.
Đối tượng sử dụng
Researchers, businesses, and government officials
Nội dung tóm tắt
This research conducts an analysis of factors affecting remittance transfers (money sent by foreign migrants to their home country) in Vietnam, using panel data methodology. It identifies key determinants for remittance transfers as foreign investment, economic growth, and the rate of urbanization. The study examines data from Vietnamese provinces over a 15-year period (2005-2019). To account for time-invariant factors, it employs an invariant variable approach. It also controls for foreign investment, economic growth, and the rate of urbanization. The findings reveal that:
1. Foreign investment has a positive impact on remittance transfers, meaning an increase in foreign investment enhances the efficiency of remittance transfers.
2. Economic growth has a negative effect on remittances, as when the economy grows, remittances may decrease due to increased employment and decreased reliance on remittances.
3. The rate of urbanization has an inverse relationship with remittances, meaning as urbanization increases, remittances may also increase due to a greater need for financial support in rural areas. The researchers conclude that:
1. Foreign investment is a determinant factor for remittance transfers in Vietnam, and economic growth and the rate of urbanization can significantly impact remittances.
2. This study suggests that policies promoting foreign investment and reducing the urbanization rate may lead to increased remittances.
