The drivers and the barriers of incoming remittance flows in Europe: Analysis at the regional level
DOI:
https://doi.org/10.12775/bgss-2026-0011Keywords
incoming remittance flows, geography, planning & development, NUTS 2, European regionsAbstract
The paper compiles a Poisson Pseudo-Maximum Likelihood econometric model aiming at detecting and assessing the drivers and the barriers of incoming remittance flows in Europe. The analysis focuses on 297 NUTS 2 level regions and covers the period 2010–2018. For the needs of the analysis, the paper compiles a dataset with interregional remittance flows “regionalising” the corresponding country-level data. The findings of the paper offer substantial insight into the roles of economic, demographic, geographical and institutional factors, not only enriching the discourse in economic integration theory but also presenting practical implications for policymakers engaged in regional economic planning and integration strategies.
References
Adamakou, M., Kallioras, D., Manetos, P., & Topaloglou, L. (2024). Uncovering regional typologies in Europe in terms of interregional and intraregional direct investment flows. European Journal of Geography, 15(1), 11–25. https://doi.org/10.48088/ejg.m.ada.15.1.011.025
Agarwal, R., & Horowitz, A.W. (2002). Are international remittances altruism or insurance? Evidence from Guyana using multiple-migrant households. World Development, 30(11), 2033–2044. https://doi.org/10.1016/S0305-750X(02)00118-3
Ahmed, J., Mughal, M, & Martinez-Zarzoso, I. (2021). Sending money home: Transaction cost and remittances to developing countries. The World Economy, 44(8), 2433–2459. https://doi.org/10.1111/twec.13110
Almazán-Gómez, M.Á., Llano, C., Pérez, J., Kallioras, D., & Tsiapa, M. (2025). Regional economic impact of the Next Generation European Union Recovery Plan. Regional Studies, 104(4), 100105. https://doi.org/10.1016/j.pirs.2025.100105
Almazán-Gómez, M.Á., Llano, C., Pérez, J., & Mandras, G. (2023). The European regions in the global value chains: New results with new data. Papers in Regional Science, 102(6), 1097–1126. https://doi.org/10.1111/pirs.12760
Almazán-Gómez, M. Á., Llano, C., Pérez, J., & Rauhut, D. (2024). Socioeconomic impacts of Russian invasion of Ukraine: A multiregional assessment for Europe. Journal of Regional Science, 64(2), 333–354. https://doi.org/10.1111/jors.12676
Amuedo-Dorantes, C., Pozo, S, & Vargas-Silva, C. (2010). Remittances in small island developing states. Journal of Development Studies, 46, 941–960. https://doi.org/10.1080/00220381003623863
Antonucci, D., & Manzocchi, S. (2006). Does Turkey have a “special” trade relation with the EU? A gravity-model approach. Economic Systems, 30(2), 157–169. https://doi.org/10.1016/j.ecosys.2005.10.003
Arezki, R, & Bruckner, M. (2011). Rainfall, financial development, and remittances: Evidence from Sub-Saharan Africa. Journal of International Economics, 87(2), 377–385. https://doi.org/10.1016/j.jinteco.2011.12.010
Aydas, O.T., Metin-Ozcan, K, & Neyapti, B. (2005). Determinants of workers’ remittances. The case of Turkey. Emerging Markets Finance and Trade, 41(3), 53–69.
Azizi, S. (2017). Altruism: Primary motivation of remittances. Applied Economics Letters, 24(17): 1218–1221. https://doi.org/10.1080/13504851.2016.1267840
Azizi, S. (2019). Why do migrants remit? World Economy, 42(2), 429–452. https://doi.org/10.1111/twec.12681
Baltagi, B.H., Song, S.H., & Koh, W. (2003). Testing panel data regression models with spatial error correction. Journal of Econometrics, 117(1), 123–150. https://doi.org/10.1016/S0304-4076(03)00120-9
Bauer, T.K., & Sinning, M.G. (2011). The savings behavior of temporary and permanent migrants in Germany. Journal of Population Economics, 24, 421–449. https://doi.org/10.1007/s00148-010-0306-z
Beck, T., & Martinez Peria, M.S. (2011). What explains the price of remittances? An examination across 119 country corridors. The World Bank Economic Review, 25(1), 105–131. https://doi.org/10.1093/wber/lhr017
Bouhga-Hagbe, J. (2006). Altruism and workers’ remittances: Evidence from selected countries in the Middle East and Central Asia. IMF Working Papers, 06/130. Availabe at: https://www.imf.org/en/Publications/WP/Issues/2016/12/31/Altruism-and-Workers-Remittances-Evidence-from-Selected-Countries-in-the-Middle-East-and-19178 (22.02.2026)
Brülhart, M., Crozet, M., & Koenig, P. (2004). Enlargement and EU periphery: The impact of changing market potential. World Economy, 27(6), 853–875. https://doi.org/10.1111/j.1467-9701.2004.00632.x
Bunduchi, E., Vasile, V., Comes, C.-A., & Stefan, D. (2019). Macroeconomics determinants of remittances: Evidence from Romania. Applied Economics, 51(35), 3876–3889. https://doi.org/10.1080/00036846.2019.1584386
Castells, M. (2000). Space of flows, space of places: Materials for a theory of urbanism in the information age. In: LeGates, R.T, & Stout, F. (eds.), The city reader. London: Routledge.
Clemens, M.A., & McKenzie, D. (2018). Why don’t remittances appear to affect growth? Economic Journal, 128(612), 62–70. https://doi.org/10.1111/ecoj.12463
Crescenzi, R., Pietrobelli, C., & Rabelloti, R. (2014). Innovation drivers, value chains and the geography of multinational corporations in Europe. Journal of Economic Geography, 14(6), 1053–1086. https://doi.org/10.1093/jeg/lbx020
Dustmann, C., & Mestres, J. (2010). Remittances and Temporary Migration. Journal of Development Economics, 92(1), 62–70. https://doi.org/10.1016/j.jdeveco.2008.12.002
Effiong, E. L, & Asuquo, E. (2017). Migrants’ Remittances, Governance and Heterogeneity. International Economic Journal, 31(4), 535–554. https://doi.org/10.1080/10168737.2017.1410207
EUROSTAT (2020). European Statistical System handbook for quality and metadata reports. Luxemburg: Publications of the European Communities. Available at: https://ec.europa.eu/eurostat/web/products-manuals-and-guidelines/-/ks-gq-19-006 (Accessed: 22 February 2026)
Fagiolo, G., & Rughi, T. (2023). Exploring the macroeconomic drivers of international bilateral remittance flows: A gravity-model approach. Economies, 11(7), 195. https://doi.org/10.3390/economies11070195
Frankel, J.A. (2011). Are bilateral remittances countercyclical? Open Economies Review, 22, 1–6. https://doi.org/10.1007/s11079-010-9184-y
Gertler, M.S. (2003). Tacit knowledge and the economic geography of context, or The undefinable tacitness of being (there). Journal of Economic Geography, 3(1), 75–99. https://doi.org/10.1093/jeg/3.1.75
Ghosh, B. (2006). Migrants’ remittances and development: Myths, rhetoric and realities. Geneva & Den Haag: International Organization for Migration & The Hague Process on Refugees and Migration.
Giuliano, P., & Ruiz-Arranz, M. (2009). Remittances, financial development, and growth, Journal of Development Economics, 90(1), 144–152. https://doi.org/10.1016/j.jdeveco.2008.10.005
Gulzar Rammal, H., & Zurbruegg, R. (2006). The impact of regulatory quality on intra-foreign direct investment flows in the ASEAN markets. International Business Review, 15(4), 401–414. https://doi.org/10.1016/j.ibusrev.2006.05.001
Hummels, D., & Levinsohn, J. (1993). Product differentiation as a source of comparative advantage? American Economic Review, 83(2), 445–449.
Hunt, J. (2006). Staunching emigration from East Germany: Age and the determinants of migration. Journal of the European Economic Association, 4(5): 1014–1037. https://doi.org/10.1162/JEEA.2006.4.5.1014
IMF (2005). World Economic Outlook 2005. Washington: International Monetary Fund.
IMF (2009). Balance of Payments and International Investment Position manual (6th ed.). Washington: IMF.
IMF (2024). Remittances: Funds for the folks back home. Available at: https://www.imf.org/en/publications/fandd/issues/series/back-to-basics/remittances (Accessed: 22 February 2026).
Inglis, C., Li, W., & Khadria, B. (2020). The SAGE Handbook of International Migration. London: Sage.
Kallioras, D., & Petrakos, G. (2010). Industrial growth, economic integration and structural change: Evidence from the EU new member-states regions. Annals of Regional Science, 45, 667–680. https://doi.org/10.1007/s00168-009-0296-5
Kallioras, D., Topaloglou, L., & Venieris, S. (2009). Tracing the determinants of economic cross-border interaction in the European Union. Spatium, 21, 1–10. https://doi.org/10.2298/SPAT0921001K
Kallioras, D., Tzeremes, N., Tzeremes, P., & Adamakou, M. (2021). Technological change, technological catch-up and market potential: Evidence from the EU regions. Regional Science Inquiry, 13(1), 135-151. https://www.rsijournal.eu/ARTICLES/June_2021/10.pdf
Kapitsinis, N., Rasvanis, E., Topaloglou, L., Manetos, P., & Kallioras, D. (2023). Regional investment flows from Greece to Bulgaria in the COVID-19 context: Is there a halt trend? Tijdschrift voor Economische en Sociale Geografie, 114(4), 352–369. https://doi.org/10.1111/tesg.12591
Karanika, M., & Kallioras, D. (2018). EU spatiality under question – Territorial cooperation in danger. Territories, 1(1), 59–72. https://doi.org/10.5070/T21141511
Kemeny, T. (2011). Are international technology gaps growing or shrinking in the age of globalization? Journal of Economic Geography, 11(1), 1–35. https://doi.org/10.1093/jeg/lbp062
Komornicki, T., Pomianowski, W., Wiśniewski, R., Szejgiec-Kolenda, B., Mazur, M., Maruniak, E., Duma P., & Wójcik J. (2023). Interregional migrations flows. Luxemburg: ESPON.
Komornicki, T., & Wiśniewski, R. (2021). The role of Poland’s eastern border in global migration systems. Europa XXI, 40, 83–98. https://doi.org/10.7163/Eu21.2021.40.7
Laurent, T., Margaretic, P, & Thomas-Agnan, C. (2022). Neighbouring countries and bilateral remittances: A global study. Spatial Economic Analysis, 17(4), 557–584. https://doi.org/10.1080/17421772.2022.2070656
Lucas, R.E., & Stark, O. (1985). Motivations to remit: Evidence from Botswana. Journal of Political Economy, 93(5), 901–918.
Lueth, E, & Ruiz-Arranz, (2006). A gravity model of workers’ remittances. IMF Working Papers, 06/290. Available at: https://www.imf.org/external/pubs/ft/wp/2006/wp06290.pdf (Accessed: 22 February 2026).
Manetos, P., Kallioras, D., Topaloglou, L., & Adamakou, M. (2022). Uncovering regional typologies in Europe in terms of interregional remittances flows. Europa XXI, 43, 47–68. https://doi.org/10.7163/Eu21.2022.43.3
Matyas, L. (1997). Proper econometric specification of the gravity model. The World Economy, 20, 363–368. https://doi.org/10.1111/1467-9701.00074
Mayda, A.M. (2010). International migration: A panel data analysis of the determinants of bilateral flows. Journal of Population Economics, 23(4), 1249–1274. https://doi.org/10.1007/s00148-009-0251-x
McCann, P. (2008). Globalization and economic geography: The world is curved, not flat. Cambridge Journal of Regions, Economy and Society, 1(3), 351–370. https://doi.org/10.1093/cjres/rsn002
McCracken, S., Ramlogan-Dobson, C, & Stack, M. (2017). A gravity model of remittance determinants: Evidence from Latin America and the Caribbean. Regional Studies, 51(5), 737–749. https://doi.org/10.1080/00343404.2015.1133904
Merkle, L., & Zimmermann, K. F. (1992). Savings, remittances, and return migration. Economics Letters, 38, 129–134. https://doi.org/10.1016/0165-1765(92)90165-U
Moral Carcedo, J., & Llano, C. (2024). How integrated regional financial markets are in Europe? A first gauge based on active securitised loans. Investigaciones Regionales, 59, 5–27. https://doi.org/10.38191/iirr-jorr.24.009
OECD (2025). Migration, remittances and development. Available at: https://www.oecd.org/content/dam/oecd/en/publications/reports/2005/11/migration-remittances-and-development_g1gh5e4a/9789264013896-en.pdf (Accessed: 22 February 2026).
Pérez-Balsalobre, S., Gallego, N., & Llano, C. (2023). Interregional flows of goods in Europe: New insight with better data. Unpublished manuscript.
Petrakos, G., & Kallioras, D. (2007). Integration and structural change: Pre-accession experience in the regions of the EU new member-states. In: Getimis, P., & Kafkalas, G. (eds.), Overcoming fragmentation in Southeast Europe: Spatial development trends and integration potential. London: Routledge.
Petrakos, G., Kallioras, D., & Anagnostou, A. (2011). Regional convergence and growth in Europe: Understanding patterns and determinants. European Urban and Regional Studies, 18(4), 375–391. https://doi.org/10.1177/09697764114078
Petrakos, G., Rodriguez-Pose, A., & Rovolis, A. (2005). Growth, integration and regional inequalities in Europe. Environment and Planning A, 37(10), 1837–1855. https://doi.org/10.1068/a37348
Portes, R., & Rey, H. (2005). The determinants of cross-border equity flows. Journal of International Economics, 65(2), 269–296. https://doi.org/10.1016/j.jinteco.2004.05.002
Ratha, D., & Shaw, S. (2007). South-south migration and remittances. World Bank Working Papers, 102.
Rodriguez-Pose, A., & Crescenzi, R. (2008). Mountains in a flat world: why proximity still matters for the location of economic activity. Cambridge Journal of Regions, Economy and Society, 1(3), 371–388. https://doi.org/10.1093/cjres/rsn011
Santos Silva, J.M.C., & Tenreyro, S. (2011). Further simulation evidence on the performance of the Poisson Pseudo-Maximum Likelihood estimator. Economics Letters, 112(2), 220–222. https://doi.org/10.1016/j.econlet.2011.05.008
Schiopu, I., & Siegfried, N. (2006). Determinants of workers’ remittances. Evidence from the European Neighbouring region. ECB Working Papers, 688. Available at: https://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp688.pdf (Accessed: 22 February 2026).
Scott, A., Agnew, J., Soja, E., & Storper, M. (2001). Global city-regions. In: Scott, A. (ed.), Global city-regions: Trends, theory, policy. Oxford: Oxford University Press.
Singh, R.J., Haacker, M., Lee, K.W., & Le Goff, M. (2011). Determinants and macroeconomic impact of remittances in Sub-Saharan Africa. Journal of African Economies, 20(2), 312–340. https://doi.org/10.1093/jae/ejq039
Simionescu, M. (2016). Macroeconomic determinants of permanent emigration from Romania. A Bayesian approach. Journal of International Studies, 9(2), 170–180. https://doi.org/10.14254/2071-8330.2016/9-2/13
Sinning, M.G. (2011). Determinants of savings and remittances: Empirical evidence from immigrants to Germany. Review of Economics of the Household, 9, 45–67. https://doi.org/10.1007/s11150-009-9082-5
Sirkeci, I., Cohen, J.H., & Ratha, D. (2012). Migration and remittances during the global financial crisis and beyond. Washington D.C. World Bank.
Sloman, J. (2006), Economics (6th ed.). Harlow: Pearson.
Tsiapa, M., Kallioras, D., Manetos, P., & Pérez-Balsalobre, S. (2025a). Brexit’s ripple effect: Transformations in European interregional trade. Regional Studies, 59(1), 2518279. https://doi.org/10.1080/00343404.2025.2518279
Tsiapa, M., Kallioras, D., Petrakos, G., Rasvanis, E., Adamakou, M., Manetos, P., & Almazán-Gómez, M.Á. (2025b), The geography of interregional FDI activity in Europe: Uneven distribution and determinants. Spatial Economic Analysis, 1-20. https://doi.org/10.1080/17421772.2025.2456185
Topaloglou, L., Kallioras, D., Manetos, P., & Petrakos, G. (2005). A border regions typology in the enlarged European Union. Journal of Borderlands Studies, 20(2), 67–89. https://doi.org/10.1080/08865655.2005.9695644
United Nations (2025). Migrants and diaspora drive development through remittance flows. Available at: https://www.iom.int/news/migrants-and-diaspora-drive-development-through-remittance-flows#:~:text=Beyond%20their%20impact%20on%20families,creating%20a%20win%2Dwin%20situation (Accessed: 22 February 2026).
Wooldridge, J.M. (2002). Econometric analysis of cross-section and panel data. Cambridge Mass.: MIT Press.
World Bank (2024). Remittances slowed in 2023, expected to grow faster in 2024. Migration and Development Brief, 40. Available at: https://documents1.worldbank.org/curated/en/099714008132436612/pdf/IDU1a9cf73b51fcad1425a1a0dd1cc8f2f3331ce.pdf (Accessed: 22 February 2026).
Yoshino, N., Taghizadeh-Hesary, F., & Otsuka, M. (2018). International remittances and poverty reduction: Evidence from developing Asia. Journal of Comparative Asian Development, 17(2), 21–42.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Maria Adamakou, Dimitris Kallioras, Panos Manetos, Lefteris Topaloglou, Maria Tsiapa, Rafał Wiśniewski
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Title, logo and layout of journal Bulletin of Geography. Socio-economic Series are reserved trademarks of Bulletin of Geography. Socio-economic Series.Stats
Number of views and downloads: 66
Number of citations: 0
