State Policy, Economic Crisis, Gender, and Family Ties: Determinants of Family Remittances to Cuba

Abstract

This article advances the argument that changing economic conditions in the home country act as an important determinant for sending remittances. Research on the determinants of remittances has tended to focus on the characteristics of the sending population. In the case of Cuba, disproportionate attention is paid to political disincentives to send remittances and not enough to changing state policy and the growing economic demand for remittances in that country. Using empirical data gathered from households in Havana, this article tests the importance of economic conditions in the home country, political ideology, the relationship of the sender to the receiver, the length of time away from home, and gender as determinants for remittances. Migration during an economic crisis, having immediate relatives in the home country, and female gender positively influenced remittance behavior for Cuban emigrants. Visits to the home country, especially for migrants who had left decades earlier, were found to be critical for reestablishing family connections and increasing remittances. No support was found for political disincentives as a major determinant of remittance sending to Cuba.