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Original Research

EFFECT OF HOUSEHOLD ALLOCATION'S REMITTANCE ON ENTREPRENEUR’S INVESTMENT

NGUYEN VAN TIEN 1, and NGUYEN THI CAM THUY 2.

Vol 19, No 10 ( 2024 )   |  DOI: 10.5281/zenodo.13960065   |   Author Affiliation: Faculty of International Business, Banking Academy of Vietnam, No.12 Chua Boc, Dong Da Dist, Hanoi, Vietnam 1,2.   |   Licensing: CC 4.0   |   Pg no: 335-346   |   Published on: 16-10-2024

Abstract

This study investigates the factors influencing the allocation of remittances by households towards entrepreneurial investments, accounting for the fact that this allocation is censored at zero and interconnected with savings. Using a bivariate Tobit model applied to data from a Vietnamese household survey, the key findings reveal that, although costs and funding sources for securing overseas employment, skill development, and savings accumulation have no significant impact, the age of overseas workers, their place of origin, and the household income level are positively correlated with the share of remittances directed toward entrepreneurial activities.


Keywords

Migration, Remittance, Bivariate Tobit model, Vietnam.