Remittance Behaviour of Chinese and Indian Immigrants in Canada
-
Murshed Chowdhury
and
Anupam Das
Abstract
Using the Longitudinal Survey of Immigrants in Canada (LSIC) dataset, we explore the differences in remittance behaviour of Chinese and Indian immigrants in Canada in relation to their socio-economic characteristics. We apply logistic regressions on the likelihood to remit, and instrumental variable regressions to estimate the amount remitted. We find that age, income, level of education, and personal investment in the home country are important determinants of the remittance behaviour of Chinese immigrants in Canada. Marital status, having family members, and involvement with ethnic organizations in the host country are the major drivers of remittances sent by Indian immigrants in Canada. By analyzing the remittance behaviour of Canadian immigrants from two major sources, this study sheds light on potential motivations to remit which contribute to policy formulation in both home and host countries.
Acknowledgments
Authors are grateful for data support from the Research Data Centre of Western University and the University of Manitoba.
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Appendix
Logistic regression of immigrants’ decision to remit.
| Variable | China | India |
| Gender | ||
| Female | 0.19 | −0.48 |
| (0.22) | (0.65) | |
| Marital status | ||
| Single and Other | 0.94 | −0.88*** |
| (0.75) | (0.32) | |
| Age | ||
| 25–34 | 0.59** | 0.69*** |
| (0.24) | (0.29) | |
| 35–44 | 0.82** | −0.08 |
| (0.37) | (0.39) | |
| 45–54 | −0.77 | −0.39 |
| (0.66) | (0.42) | |
| 55 and above | −0.73 | 0.65*** |
| (0.62) | (0.23) | |
| Education | ||
| College | −0.62*** | −0.84*** |
| (0.35) | (0.22) | |
| Undergraduate | −0.94** | 0.10 |
| (0.36) | (0.29) | |
| Graduate | −0.65 | −0.09 |
| (0.49) | (0.17) | |
| Motivation to Migrate | ||
| Economic ppportunity | −0.37*** | −0.91*** |
| (0.11) | (0.31) | |
| Business and other | −1.59*** | −0.37*** |
| (0.58) | (0.09) | |
| Households income | ||
| $10,000 to $24,999 | 0.82*** | 0.57*** |
| (0.22) | (0.20) | |
| $25,000 to $44,999 | 1.21*** | 0.87*** |
| (0.33) | (0.30) | |
| $45,000 to $70,000 | 0.80*** | 2.87*** |
| $45,000 to $70,000 | (0.22) | (0.53) |
| $70,000 and above | −0.91** | −2.47*** |
| (0.38) | (0.51) | |
| Employment Status | ||
| Part-time and other | −0.73 | −0.38** |
| (0.52) | (0.17) | |
| Family | ||
| No family in Canada | −0.05*** | −0.43*** |
| (0.00) | (0.14) | |
| Investment/saving home | ||
| No investment/saving in the home country | −0.55*** | −0.10 |
| (0.08) | (0.19) | |
| Investment in Canada | ||
| No investment in Canada | 0.64** | 0.37*** |
| (0.30) | (0.07) | |
| Family obligation | ||
| Spouse and the respondent | −0.13** | −0.07** |
| (0.06) | (0.03) | |
| Spouse, children and the respondent | −0.22 | −0.15 |
| (0.30) | (0.32) | |
| Spouse, children, others and the respondent | −0.15 | −0.91 |
| (0.17) | (1.11) | |
| Relationship with the ethnic group | ||
| Close | −0.07 | −0.17 |
| (0.21) | (0.21) | |
| Somewhat close | −0.29 | −0.37** |
| (0.27) | (0.14) | |
| Not close at all | −1.24 | −0.91*** |
| (0.71) | (0.37) | |
| Number of observations | 29,352 | 24,344 |
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