Migration, Remittances and Entrepreneurship: The Case of Rural Ecuador

Using data from the Living Standard Measurement Survey 2005-2006 for Ecuador, this paper analyzes the impact of migration and remittances on the likelihood of rural households owning a business. The results show that neither migration nor remittances have any effect on the odds of a household owning...

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Detalles Bibliográficos
Autor principal: Cristian Vasco
Formato: Artículo científico
Publicado: El Colegio de la Frontera Norte, A.C. 2013
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Acceso en línea:http://www.redalyc.org/articulo.oa?id=15129650002
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-016&d=15129650002oai
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Sumario:Using data from the Living Standard Measurement Survey 2005-2006 for Ecuador, this paper analyzes the impact of migration and remittances on the likelihood of rural households owning a business. The results show that neither migration nor remittances have any effect on the odds of a household owning a rural business. Instead, education, credit and access to services are positively correlated with the probability of owning a rural enterprise. Contrary to expectations, empirical endogeneity tests (Smith-Blundell) fail to reject the null hypothesis of exogeneity of migration, remittances and average town remittances with respect to the likelihood of business ownership.