Migrant Remittances in Greece and Portugal: <i>Distribution by Country of Provenance and the Role of the Banking Presence</i>

Abstract

The article examines migrant remittances per country of origin of remittances for two emigration countries, Greece and Portugal. It also examines the relationship between remittances and the number of banks of the emigration country in the host country. From the analysis it appears that remittances are concentrated in a small number of host countries – the US and Germany for the Greek case; France (mainly) and the US, Germany and Switzerland for the Portuguese case. Remittances followed similar trends, characterized by especially high growth during the 1970s and also during the second half of the 1980s. For both countries similar trends are observed regarding the relationship between remittances and remittances per migrant with the presence of banks of the home country at the important countries of origin of remittances. The growth of the banking presence in host countries had a significant impact on the growth of migrant remittances. However, remittances and migrant population are neither the unique nor main reason for banking expansion abroad. The common European financial and banking market is expected to play a major role in the banking presence abroad, particularly in European Union countries.