Abstract
The dominance of housing may reflect limitations in the menu of investment choices available to migrants in the country of origin. In many developing countries individuals face relatively few savings opportunities where productive assets (such as land farm assets) are associated with high risks and/or low rates of return. Housing investments offer unique advantages in that they are durable highly visible and associated with low risk and monitoring requirements. However there are some important drawbacks associated with housing investments. In particular where resale and rental markets for housing are not well developed migrants housing assets may be relatively illiquid and irreversible. In the next section I provide some background on general patterns of investment behavior among migrants. Here the evidence on housing investments is discussed for a rich set of migrant sending and receiving countries. In Section III I develop the conceptual framework for understanding migrants housing investment decisions. Section IV provides a description of the data sources. Section V outlines the empirical strategy. In Section VI I discuss the empirical findings. Section VII presents conclusions. (excerpt)
Published Version
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