Political Investment: Remittances and Elections

Abstract

Elections, the defining feature of representative democracy, are generally considered domestic matters. However, elections are increasingly influenced by and conducted on the international stage, and migrants have become increasingly important political actors in home country elections. This article analyses the relationship between migrants’ remittances and elections in their countries of origin, and argues that migrants’ decisions to remit reflect their home countries’ electoral calendars and political context. An analysis of remittance flows to eighty-one developing countries, 1990–2005, provides systematic evidence for the existence of political remittance cycles. Remittances increase in election years, an effect that is larger the more contested the election and the poorer the home country, suggesting an understudied link between developing countries’ domestic politics and their citizens living abroad.

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