THE IMPACT OF REMITTANCES ON OPPORTUNITYBASED AND NECESSITY-BASED ENTREPRENEURIAL ACTIVITIES

Hypotheses have been developed grounded in the entrepreneurship and economic development literature to explain how remittance is related to necessity or opportunity based entrepreneurial activities. Using data covering thirty countries from 2001 to 2009, found that remittance is positively related to necessity-based entrepreneurial activities, and negatively related to opportunity-based entrepreneurship. The findings, which should be of interest to both academic and policy makers, suggest that remittance is a valuable source of funding for entrepreneurs lacking employment opportunities, but the opposite is true for those pursuing entrepreneurship as one among other employment options