Political Conflict and Diaspora Investments

• In Event: Conflict Processes 2 Virtual Poster Session

Abstract

Widespread conflict or political instability in the home country can deter remittance inflows, especially those targeting investment since a politically unstable polity is not conducive to investment. I argue that higher levels of political violence or conflict in the receiving home country can predict a reduction in the amounts of diaspora remittances received in the migrant’s homeland. This paper bridges an existing gap in predicting remittance behavior by examining longitudinal data of 38 sub-Saharan countries between 1999 to 2018 to see how events of widespread political violence impact the total amount of investment remittances received annually. By employing a bird’s eye view of the political conditions surrounding ebbs and flows in remittances to a great number of countries, I attempt to establish generalizable patterns of remittance behavior in response to forms of political conflict—ethnic violence, civil violence, and wars. The results are consistent with my hypotheses and indicate that migrants remit less toward home country investments when the home country experiences periods of widespread political conflict.

Author

• Lulu Onakpoya, APSA