THE ECONOMIC PSYCHOLOGY OF MIGRATION: REMITTANCES AND INVESTMENT INDEVELOPING COUNTRIES
Keywords:
Economic Psychology, Migration, Remittance, Investment and Developing CountriesAbstract
This study revealed existing literature on the economic and psychological factors that influence international migrants from developing nations' investment choices and remittance practices. Although the macroeconomic significance of remittances has been widely acknowledged, little is known about the cognitive, emotional, and behavioral underpinnings of these financial transfers. This study examines how affective attachments, cultural identity, financial capability, and institutional trust affect migrants' financial allocations using the conceptual tools of economic psychology. Study used secondary sources from journals, Central Bank Statistical Bulletins, World Bank, National Bureau of Statistical and the Internet as a method. It synthesizes behavioral economics, migration theory, and psychological constructs to examine how migrants' cognitive biases, social norms, and emotional attachments to their countries of origin shape their remittance patterns and investment choices. It also takes into account the dual function of remittances as strategic investments in areas like housing, education, and entrepreneurship as well as support for families. The study recommends among other things that Policymakers in those countries must take into account the behavioral aspects of migrant finance in order to fully utilize the developmental potential of remittances and that they should also incorporate economic psychology into analyses of migrant investment and remittance patterns.
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