This paper highlights the importance of remittance flows between Ghana’s rural and urban sectors. Using data from the 1998/99 Ghana Living Standards Survey and a methodology that accounts for selectivity bias, several factors influencing remittance flows have been identified. These include welfare levels, the presence of a migrant, kin-fostering, the relationship between remitters and recipients, and gender. Our results also provide support for the presence of both altruism and self-interest in remittance decisions. Employing counterfactual scenarios, we further find that although rural-to-urban remittances had little impact on the welfare of recipients, rural recipients of urban remittances derived, on average, considerable welfare gains.