Migration, Remittances, and Entrepreneurship: A Seemingly Unrelated Bivariate Probit Approach

Authors

DOI:

https://doi.org/10.33182/rr.v5i1.807

Keywords:

Migration, remittances, entrepreneurship, bivariate probit

Abstract

The aim of this paper is to examine the interdependence between the decision to invest in entrepreneurship and the receipt of remittances. Firstly, a conceptual framework is developed within the household utility-maximisation model, wherein households are seen to make decisions on entrepreneurship and remittances simultaneously. Guided by this, the model is specified and estimated, employing the seemingly unrelated bivariate probit model upon a random sample stemming from the Kosovo population census. The findings suggest broad support for the household approach. As expected, the two decisions are simultaneously determined and, while remittances have a positive impact on entrepreneurship, no evidence is found for the statistical importance of migration. Household entrepreneurial behaviour is determined by demographic characteristics, income, relative wealth, education, and type of area.

Author Biographies

Mrika Kotorri, University of Prishtina 'Hasan Prishtina', Kosovo

Associate Professor and also the Head of the Economics Department at the University of Prishtina "Hasan Prishtina", Kosovo. She also holds an adjunct professor position at the Rochester Institute of Technology in Kosovo.

Marina Dabic, Nottingham Trent University, UK The University of Zagreb, Faculty of Economics and Business Croatia

Full Professor of Entrepreneurship and International Business at the University of Zagreb, Faculty of Economics & Business, Croatia and Nottingham Business School, Nottingham Trent University, the UK.

My research has appeared in a wide variety of journals including Journal of International Business Studies, Journal of World Business, Journal of Business Ethics, European Management Journal, Thunderbird Business Review, Management Decision, JHRM, Journal of Manpower etc . I am the editor of the International Journal of Transition and Innovation Systems, Inderscience. My research areas include entrepreneurship, international business, innovation, and management of technology and the impact of innovation on CEE countries. For my research I have been granted with ALIS, Erasmus and Leonardo scholarships. I was grant holder of several EU projects and JP TEMPUS Project: Fostering Entrepreneurships in Higher Education- FoSentHE . In 2004 I was visiting Professor at Strathclyde University, Scotland sponsored by EU. In2012 I was visiting professor at Columbus Sate University, Georgia, USA

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Published

2020-04-26

How to Cite

Kotorri, M., Krasniqi, B. A., & Dabic, M. (2020). Migration, Remittances, and Entrepreneurship: A Seemingly Unrelated Bivariate Probit Approach. Remittances Review, 5(1), 15-36. https://doi.org/10.33182/rr.v5i1.807

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