FACTORS DRIVING REMITTANCES BY MINANGKABAU’S MIGRANTS TO SENDING HOUSEHOLDS IN RURAL AREAS

Ismawati, Iis and Mustadjab, Muslich and Hanani, Nuhfil and Syafrial, Syafrial (2018) FACTORS DRIVING REMITTANCES BY MINANGKABAU’S MIGRANTS TO SENDING HOUSEHOLDS IN RURAL AREAS. Russian Journal of Agricultural and Socio-Economic Sciences, 8 (80). pp. 317-326. ISSN 2226-1184

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Abstract

Minangkabau culture is characterized by a matrilineal family system and high level of migration. The contribution of Minangkabau migrants to rural origins and household left behind is generally very high. However, there is currently limited empirical research on this issues especially to paddy farm households in rural areas. This article emphasizes what decision to remit is intensely associated to individual migrant, farm household and social group characteristics. Using farm households survey data from three villages in West Sumatera, our results lend support that remittances are sending to farm households with low levels of welfare. Futhermore, individual characteristics such as gender and migrant expenditure are influential in remitting patterns. In addition, no differ between clan groups of migrants. These results indicate primary driver of Minangkabau migrants in sending remittances is altruism. Understanding the sending of remittances behavior is crucial for rural areas to improve these potential capital transfer for more sustainable agricultural development programme.

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