Remittance Behavior of Iranian Immigrants in Canada: The Impact of Economic Sanctions

• In Event: 20862 - Section on International Migration Roundtables
  In Refereed Roundtable (60 minute): Table 15: Citizenship and Transnationalism

Abstract

This study explores the remittance behavior of Iranian immigrants in Canada, focusing on how economic sanctions and structural constraints influence their remittance practices. Unlike many migrant groups who can access formal remittance channels, Iranian immigrants face significant barriers due to sanctions, which limit their ability to send money through official methods. While only 11% of surveyed Iranian immigrants participate in remittance transactions, their collective contributions are substantial, ranking fifth in volume among over 50 migrant groups in Canada (Dimbuene and Turcotte 2019). Despite this, Iranian remittance behavior remains largely underexplored in the literature. Using data from the Study on International Money Transfers (SIMT), this study compares Iranian immigrants' remittance patterns with those of other migrant groups to assess the impact of sanctions. Key micro-level determinants, such as income, marital status, migration history, and sociodemographic characteristics are examined in relation to remittance behaviour, alongside the broader influence of structural constraints of the economic sanctions. The study uses a multi-step statistical approach, including descriptive statistics, multinomial logistic regression, and ordinary least squares regression, to analyze how these factors shape remittance patterns. The results reveal that Iranian migrants, despite having higher levels of education and being more recent migrants, participate in remittance transactions at lower rates and send less money to Iran than other groups. Structural factors, including sanctions, discourage remittances to Iran, with many migrants opting to send funds to alternative destinations. This research highlights the significant role that geopolitical constraints play in shaping financial practices among migrants, offering new insights into the broader implications of sanctions on transnational financial flows. The findings suggest the need for policies that facilitate secure, affordable remittance channels for Iranian migrants and contribute to a more nuanced understanding of remittance behaviour under restrictive conditions.

Author

• Leili Yousefi, McMaster University