Political risk, institutional quality and financial drivers of diaspora remittances

Purpose This study aims to examine how political risk factors influence expatriate remittance flows, focusing on governance and corruption in shaping financial transfers. Design/methodology/approach Using panel data from 1987 to 2018, regression analysis explores the impact of 12 political risk factors on remittance inflows from four Gulf Cooperation Council countries. Findings Political risk significantly influences remittance flows. Corruption increases remittances, driven by altruism, while poor governance reduces them. Key financial indicators also play a role. Research limitations/implications Aggregate data limits understanding of individual motives. Future studies should include micro-level data for deeper analysis. Practical implications The findings stress the importance of improving governance and financial systems to maintain remittance inflows. Social implications Reducing corruption and enhancing governance can strengthen socio-economic conditions for families reliant on remittances. Originality/value This research uniquely integrates political risk into remittance analysis, offering insights into governance and corruption effects.