Determinants of Emigrant Deposits in Cape Verde

28 Pages Posted: 21 Jun 2006

Date Written: May 2006


In the last decade Cape Verde has experienced a strong accumulation of emigrant deposits. These deposits have provided much-needed foreign exchange to the country, adding support to the exchange rate peg. This paper studies the long-run determinants of emigrant deposits with respect to risk, wealth, and return variables, isolating speculative and altruistic motives underlying the accumulation of flows. The study suggests that the temporary character of recent emigration is responsible for the rise in the share of flows driven by altruism. Finally, the paper discusses policy implications in light of the empirical findings and the recent literature on this topic.

Keywords: Cape Verde, emigrant deposits, remittances, altruism, migration

JEL Classification: D10, F22, J61

Suggested Citation

Karpowicz, Izabela, Determinants of Emigrant Deposits in Cape Verde (May 2006). IMF Working Paper No. 06/132, Available at SSRN:

Izabela Karpowicz (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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