Free Dissertation Results On Difference In Remittance Payments Between Countries

Introduction

In this paper we will show the basic concepts of statistics and probability theory related to a real world problem. The problem we investigate is about remittance payments. It is known that Remittance is a payment document for international payments and international remittances in foreign currency check, bill of exchange, and so on. Recently, more and more widely used to refer to it international money flows, and various categories of labor and economic migrants, when the last regular part of the money sent home. According to World Bank estimates, in 2006 these remittances amounted to 250-300 billion US dollars; increasing over the past 10 years at a rate of about 30% per year. International money transfers, due to their increasing importance, and an important contribution to the GDP of some developing countries, tend to stand out as a separate subcategory of financial and economic remittances. In the translation process take part sender, recipient, he bill for a certain amount, as well as intermediaries, taking it for a certain fee (tariff).
It is also known about the income inequality around the world. The amounts of revenues are influenced by many different factors, often with multidirectional effects. Among them are the socio-political, determines the strength and direction of action of other factors, income generation; demographic, considering the dependence of revenues on gender, age, physical endurance and intellectual abilities; professional, exploring the level of education, skills and experience; status, determining the size of income depending on the place of man in society and the job hierarchy; socio-economic, to which, in particular, gender and type of activity, employment options, type of production, the form of ownership of the means of production, labor conditions. In countries whose territories have been various climatic conditions, are particularly important geographical factors as the cost of essential goods and services varies greatly depending on the region and, therefore, involves different levels of income. Speaking of income differentiation, and should take into account such important aspects as the innate abilities of people who can vary quite substantially. Not disadvantaged in this respect nature, individuals having higher performance, and receive higher incomes. In addition, some of them have unique abilities, allowing them to extract the "intellectual rent." Not the last value at the same time and have the capacity of man, his desire to achieve good results in their work.
It is known that the amount of income depends on differences in the possession of the property, but the latter can reach individuals in the inheritance, i.e. income inequality is reproduced to obtain the products of this category of persons better education and, consequently, higher paying jobs. When considering the income inequality cannot be ruled and favorable circumstances.
Thus, it is natural to assume that the amounts of remittance payments are significantly different between the persons with different level of income and from different countries. In this research we will investigate this issue.

Data Description

We are given with the data of 236 observations which are measured with the following variables:
Direction – the direction of the remittance payment. 1- to the UK, 2- from the UK to a different countries
Country – the country which is related to a remittance payment with UK. 1- Australia, 2 – New Zealand, 3 – The Philippines
Inc_Low - The amount remitted with a below-average income
Inc_Avg - The amount remitted with an average income
Inc_Hig - The amount remitted with an above-average income
Age – the age of a person
Gender – the gender of the person
Origin – the origin country of a person
Residence – the residence country of a person
Ethnicity – person’s ethnicity
Level of education completed – the information of highest level of education completed by a person
Current employee status – full-time employed, partial time employed, self-employed, retired or student.
Descriptive Statistics
We begin with descriptive statistics for Direction, Country and all three variables for income. It’s important to know how the income data is distributed by Country and Direction factors.

Interpretation

The first table shows that there are 74 valid observations for the amount remitted with a below-average income, 66 valid observations for the amount remitted with an average income and 71 valid observations are for the amount remitted with above-average income. The other observations are missed.
The second table represents the basic measures of central tendency and measures of variability for each class of income, grouped by country. This table is very huge to use in comparisons, that’s why it’s useful to visualize the data and provide a summary on a box plot. This type of chart is in a convenient form shows the median, lower and upper quartiles, minimum and maximum sample value and emissions. Several of these boxes can be drawn side by side, to visually compare one with another distribution, they can be drawn horizontally or vertically. The distances between the different parts of the box are used to determine the spread (variance) and asymmetry in the data and identify outliers.
According to the box plots we can see that the median value of the Inc_Low is lower for The Phillipines, and higher for Australia. The same tendency is for Inc_Avg variable and the data is similarly ranged. For Inc_High there is the same relation between the median value, however, data is more dispreced, especially for The Phillipines.
According to the tests of normality, we can conclude that the data is not normal (the significance of Shapiro-Wilk test is below 0.05). Thus, we can’t use Student’s t-test to compare mean values and we should use non-parametric analogue of this test – Mann-Whitney test.

Mann-Whitney Test

Mann - Whitney U-test is a statistical test used to evaluate differences between two independent samples in terms of any sign of measured quantitatively. It can detect differences in the value of the parameter between small samples.

Firstly we test the differences in each of three remitted amounts groups of income by direction of payment:

Since p-value of the test is lower than 0.05 we can reject the null hypothesis and say that there is a significant difference in the amount remitted for each of group of income between the directions of payment.
However, there is a question about how are remitted payments related to each other by the factor of the country. Since there are more than 2 groups in Country variable, this question requires using non-parametric analogue of ANOVA test – a Kruskal-Wallis test.

Kruskal-Wallis Test

Kruskal - Wallis criterion is atest for equality of medians of several samples. This criterion is a multidimensional generalization of the Wilcoxon - Mann – Whitney tests. Kruskal – Wallis test is a ranked test, so it is invariant with respect to any monotonic transformation of the measurement scale.
Since p-value of the test is lesser than 0.001 for each of three income levels, we can reject the null hypothesis and conclude that there is a significant differences in the amounts of remitted payments for each of three level of incomes by the factor of country.

Conclusion

In this paper we have investigated the relationship between the amounts of remitted payments for three groups of income. The payments were sent to UK from abroad or vice versa. There are three different countries were explored – Australia, New Zealand and ThePhillipines.
Since the data distribution of the payments was not normal, we have used non-parametric tests to check whether the payments amounts are different between the groups of income, between the countries and by the direction of payment.
It is appeared that there is a significant difference in remitted payments in each of these cases. We can conclude that people with various income levels and from various countries send significantly different amounts of payments. Also, the amount of payments sent in UK are different from the amount of payments sent from UK (for all three income levels and all three countries explored)