There is concern that Pacific Island economies dependent on remittances of migrants will endure foreign exchange shortages and falling living standards as remittance levels fall because of lower migration rates and the belief that migrants' willingness to remit declines over time. The empirical validity of the remittance-decay hypothesis has never been tested. From survey data on Tongan and Western Samoan migrants in Sydney, this paper estimates remittance functions using multivariate regression analysis. It is found that the remittance-decay hypothesis has no empirical validity, and migrants are motivated by factors other than altruistic family support, including asset accumulation and investment back home.

Migration remittances regression Sample survey Tonga Western Sāmoa

information processing Studies Research Methodology Microeconomic Factors polynesia Australia economics population Migrants demography methodology developing country Surveys Micronesia-polynesia Population Dynamics motivation Standard Of Living Developing Countries epidemiology Sampling Studies Developed Countries financial management Oceania investment psychology Socioeconomic Factors Psychological Factors Pacific islands Behavior socioeconomics Article migration international migration developed country Demographic Factors research Samoa Emigration and Immigration remittances Tonga Economic Factors Transients and Migrants Financial Activities Data Collection Investments