This study uses several small, non-representative household surveys from the Dominican Republic (1999-2001) to examine the impact of international remittances on family business ownership. Since the receipt of remittances and business ownership may be jointly determined, the authors estimate a system of simultaneous probit models. Results suggest that households receiving international remittances are not more likely to own a family business than households not receiving remittances. According to the authors, one reason for this outcome may be that remittances increase the reservation wage of household heads, making them less likely to invest in business.
©2006 Wiley. Reproduced with permission of Blackwell Publishing Ltd.