Discussion Paper

No. 2017-86 | October 18, 2017
Post electoral crisis and international remittances: evidence from Côte d’Ivoire

Abstract

This paper analyzes the determinants of international remittances received during the post electoral crisis in Côte d'Ivoire, using data collected 5 months after the end of the conflict. The author finds that the crisis has been a means of mobilizing social capital and demonstrating altruistic and insurance behaviors beyond the bounds of kinship. Transfers are mainly sent for consumption purpose, but amounts transferred for small investments and human capital are higher. Moreover, the propensity to transfer higher amounts decreases when emigration occurred after the November 2004 violent events. Altruism resists to time.

Data Set

JEL Classification:

F22, F24, O15

Assessment

  • Downloads: 444

Links

Cite As

Yao Silvère Konan (2017). Post electoral crisis and international remittances: evidence from Côte d’Ivoire. Economics Discussion Papers, No 2017-86, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2017-86


Comments and Questions


Anonymous - Invited Reader Comment
October 19, 2017 - 08:38

Post electoral crisis and international remittances: evidence from Côte d’Ivoire

By Yao Silvère Konan

General comment.
This is a good paper that provides important information on remittances before, during and after the Ivorian conflict. It documents the motivations for transferring money. Indeed, the author found that transfers are ...[more]

... mainly sent for consumption purpose, but amounts transferred for small investments and human capital are higher. Moreover, men receive higher amount than women. The paper fail to dig deeper on the social characteristics of the recipients (for instance marital status of the recipients, level of education, status of the recipient in the household, does the recipient have dependents?). This would have helped in providing insights on some of the results. For instance in explaining why amounts transferred to men are higher than that received by women; and also why recipients engaged in paid activity receive higher amount of transfer? The paper could be improved by addressing the above issues.


Anonymous - Invited Reader Comment 2
November 16, 2017 - 08:34

The remittances of migrants and generally the contribution of migrants to development is a problem at the heart of development thinking. In this article, the author discusses the determinants of remittances in a context marked by an election crisis. This particular problem is relevant and well argued. The paper brings ...[more]

... new statistical evidence based on microeconomic data. Econometric approaches add value to the subject.
In this respect, the article may be published because of the quality of the data used and the relevance of the methodological approach.


Anonymous - Referee Report 1
November 22, 2017 - 08:41

see attached file


Anonymous - Referee Report 2
November 27, 2017 - 08:52

Economics E-Journal
Referee report
Paper tittle: Post Electoral Crisis And International Remittances: Evidence From Côte D’Ivoire

Using post electoral conflict data from Côte d'Ivoire, the authors analyze the determinants of international remittances. They find that though transfers are mainly send for consumption purpose, amounts transferred for small investments ...[more]

... and human capital are higher.

The paper, in my opinion, has potential but I am hesitant to consider this a significant contribution for a journal like Economics E-Journal. The paper needs to be rewritten completely in terms of everything – motivation, theoretical framework and empirical analysis if it has to be considered for publication at all. I have several issues with the current draft. I would recommend a major revive-resubmit. My main comments are

1. I believe the authors are trying to answer some important questions but I fail to see that motivation being well formulated in the Introduction. The Introduction fails to convey the contribution of the paper to the remittance-economic development literature as well as the motivation behind the questions asked.

2. I am less convinced about the econometric analysis. My first problem is with the sample size. The sample size is too small in my opinion for a micro study. I understand that there is nothing much that can be done about this but still I am hesitant to see how a convincing analysis can be performed with such a small sample size.

3. My second problem is sample selection bias. The data is collected only from the city of Abidjan which is the capital of the country. I am not convinced that the sample consists of random data. The authors should discuss more to convince the readers about the sample section process and associated randomness or non-randomness of the collected data. In case on non-random data collected, how is such bias mitigated?

4. While authors do comment that Durbin-Wu-Hausman test does reject the presence of endogeneity, we all know that the test comes with great amount of limitations. See for example http://marcfbellemare.com/wordpress/10988. Thus, the authors need to put some serious thought about the endogeneity concern.

5. Endogeneity can rise from omitted variable bias as well. The characteristics of the remittance senders can, in fact, drive the altruistic results that is being captured by the authors. In other words, the type of people who are sending the remittances can be driving some of the results that is not being captured at all. While it won’t be possible to take that into account, a model that does take into account endogeneity will take into account the omitted variable bias

6. Thus, the authors need to come up with a proper identification strategy.

7. I don’t see any controls with regard to educational level of sender or recipient

8. Also, head of household or income of household is not controlled for as well.

9. Will more data be collected? Is it possible to consider a panel at all? Otherwise, the authors should at least state the short comings of the current draft.