Does More Time Spent Calling Home Correlate with Higher Remittances? Evidence from Migrants in the State of Qatar

Abstract

This paper investigates an intriguing relationship between the demand for telecommunication and remittance services by migrants in Qatar. The hypothesis is that there are important synergies between telecommunications and remittances. Migrants with greater telecom access may have higher demand for remittances, because more frequent communication with relatives raises altruistic motivations for remitting. Migrants who remit more may also demand greater telecommunication service if they seek to monitor remittance recipients' expenditure patterns. Suggestive evidence of complementarities in telecommunication and remittance demand is found using a cross-sectional dataset of temporary migrants in Qatar from developing countries. This finding highlights an overlooked, yet potentially important role of telecommunication in stimulating greater remittances.