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A rejoinder to "The impact of infectious diseases on remittances inflows to India"

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  • Stark, Oded
Abstract
We argue that the volume of remittances sent home by migrants is influenced by the exogenous likelihood that the duration of their migration will be cut short. A higher probability of reverse migration, brought about by the collapse of jobs in the wake of COVID-19, made migrants attach greater importance to the creation of a social and economic environment in their places of origin that can support them when they return. There are several ways in which this can be done. One is by instilling gratitude. When bigger remittances are responded to by greater gratitude, the support will be bigger. An impact of the COVID-19 pandemic on migrants’ perceived duration of their migration is an increase in the uncertainty of the duration. The good will of migrants’ families and communities at origin is a form of insurance. A standard response to uncertainty is to take out insurance, and when uncertainty is higher, insurance is more valuable, and there is a tendency to acquire more of it. As it happens, the link between the volume of remittances and the likelihood of return migration does not feature at all in Shastri’s (2022) paper, nor for that matter in related writings by the World Bank and the IMF. The purpose of this rejoinder is to draw attention to this link, inducing students of migrants’ remittances to explore the link.

Suggested Citation

  • Stark, Oded, 2023. "A rejoinder to "The impact of infectious diseases on remittances inflows to India"," Journal of Policy Modeling, Elsevier, vol. 45(3), pages 677-680.
    • Handle: RePEc:eee:jpolmo:v:45:y:2023:i:3:p:677-680
    DOI: 10.1016/j.jpolmod.2022.09.016
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    References listed on IDEAS

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    1. Stark, Oded & Budzinski, Wiktor, 2023. "The demand for gratitude as a restraint on the use of child labor: A hypothesis," Journal of Demographic Economics, Cambridge University Press, vol. 89(1), pages 137-147, March.
    2. Oded Stark, 2009. "Reasons for Remitting," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 10(3), pages 147-158, July.
    3. Oded Stark & Lukasz Byra, 2020. "Can a deportation policy backfire?," Public Choice, Springer, vol. 183(1), pages 29-41, April.
    4. Oded Stark & Ita Falk, 2000. "Transfers, Empathy Formation, and Reverse Transfers," International Economic Association Series, in: L.-A. Gérard-Varet & S.-C. Kolm & J. Mercier Ythier (ed.), The Economics of Reciprocity, Giving and Altruism, chapter 8, pages 174-181, Palgrave Macmillan.
    5. Stark, Oded, 2019. "Behavior in reverse: reasons for return migration," Behavioural Public Policy, Cambridge University Press, vol. 3(1), pages 104-126, May.
    6. Kangni Kpodar & Montfort Mlachila & Saad Quayyum & Vigninou Gammadigbe, 2023. "Defying the Odds: Remittances during the COVID-19 Pandemic," Journal of Development Studies, Taylor & Francis Journals, vol. 59(5), pages 673-690, May.
    7. Shastri, Shruti, 2022. "The impact of infectious diseases on remittances inflows to India," Journal of Policy Modeling, Elsevier, vol. 44(1), pages 83-95.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

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