Remittances and Political Accountability

Abstract Chapter 2 sets out the book’s central argument in detail and outlines our main empirical expectations. The argument starts with the income and insurance effect of remittances. It proposes that, due to the economic importance of remittances for the households that receive them, fluctuations in remittances will impact recipients’ economic evaluations and their ability to shoulder the burden of corruption. Fluctuations in remittances also impact recipients’ dependence on the state, leading to greater tolerance of poor public goods provision. When remittances increase, or remain stable, these three channels will translate into higher levels of government approval or at the very least, less of a willingness to sanction and punish the authorities for poor performance. Declines in remittances may lead to heightened incentives to sanction the authorities and to lower levels of government approval.