Identifying the Motives of Migrant Philanthropy

Donations by migrants to community projects in their home countries (“collective remittances”) help to provide local public goods and may promote economic development. We draw on the literatures on migrant remittances and on philanthropy in general to identify possible motives for collective remittances. We test the empirical relevance of these motives using micro-level data from Eastern Europe. Our results suggest a mix of motives including altruism, exchange, and concern about future membership rights in the community of origin. We also find that communities with a high degree of ethnic fragmentation and a wide dispersion of migrants across destination countries are less likely to receive collective remittances.

Kiel Institute Expert