Remittances and entrepreneurship: Determining the type of remittances which affects entrepreneurship in the Philippines

• Main Authors: Santos, Michelle Andrea Vargas, Leonida, Daniella Marie Espiritu, Arao, Joshua Tindalo Cariño
• Format: text
• Language: English
• Published: Animo Repository 2021
• Subjects: Emigrant remittances—Philippines; Migrant remittances—Philippines; Entrepreneurship—Philippines; Economics
• Online Access: https://animorepository.dlsu.edu.ph/etdb_econ/35
• Institution: De La Salle University

The Philippines has been one of the largest suppliers of migrant workers, thus, it also has one of the highest remittance inflows. These monetary inflows increase the income of households which enables them to increase their consumption and investment levels. Therefore, if the monetary inflows were allocated towards productive investments, such as entrepreneurial activities, it will have the capacity to further increase and support the economic growth of the Philippines. This paper focuses on the relationship between remittances (foreign and domestic) and entrepreneurial engagement. The propensity score matching method (PSM) was used to estimate the likelihood of the remittance recipients to engage in entrepreneurial activity and the results showed that both foreign and domestic remittances have a positive impact on entrepreneurship.