Abstract
What drives remittances is one of the most important questions in the migration literature. However, there is no systematic theory that explains such behaviour and the statistical evidence is scarce, especially for the case of Kosovo. Using the data from a survey conducted in Kosovo in 2006, this paper is an attempt to find the main determinants of remittances. The results suggest that, among others, the motive to invest and perceptions about the business environment are significant determinants of remittances. Testing the link maintenance theory through the migration duration, the results also suggest that remittances grow at a decreasing rate and the evidence for the aspirations to inherit assets in home country exists and affect remittances positively. These findings show that there is room for policy-makers to improve the business environment by investing in infrastructure, fight corruption, etc., which would affect perceptions of migrants and, hence, increase intentions to remit more.
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