Choice of Money Transfer Methods in the Case of Albanian Immigrants in Greece

Abstract

This paper investigates the choice of the method that immigrants use for the transfer of savings to their home country. The paper examines the example of Albanian immigrants in Greece using a sample of permanent and seasonal immigrants. Three methods were proposed to the immigrants: the banking network, money transfer companies and hand carried transfer by their or a relative’s return in Albania. Cost and quickness of transfer were considered as a parameter for the choice. The paper finds that despite the growth of remittances through the official network and the growth of this network in Albania, immigrants prefer to send money through the parallel market by their return or a relative’s in Albania. Within the official market, permanent immigrants are more likely to use the banking network while seasonal immigrants prefer to use the money transfer companies’ network.