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Are Immigrant Remittance Flows a Source of Capital for Development
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TL;DR: In this paper, the authors developed a framework that links the motivation for remittances with their effect on economic activity and showed that remittance has a negative effect on the economic growth.
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Abstract: The role of remittances in development and economic growth is not well understood. This is partly because the literatures on the causes and effects of remittances remain separate. We develop a framework that links the motivation for remittances with their effect on economic activity. Because remittances take place under asymmetric information and economic uncertainty, there exists a significant moral hazard problem. The implication is that remittances have a negative effect on economic growth. We test this prediction using panel methods on a large sample of countries. The results indicate that remittances do have a negative effect on economic growth, which indicates that the moral hazard problem in remittances is severe.
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Citations
Harnessing the Diaspora: The Political Economy of Dual Citizenship, Migrant Remittances and Return * 뀀Ƞ
David Leblang
- 01 Jan 2013
TL;DR: In this article, the authors argue that expatriate dual citizenship rights help home countries leverage the human and material resources of their diasporas, and they test this argument using macro level evidence for a large panel of countries over the period 1980-2009 as well as with micro level data from migrant surveys carried out in a variety of host countries.
Interplay of poverty, remittances and human capital development: Panel evidence from selected Sub‐Saharan African countries
TL;DR: In this article , the authors examined the effects of remittances on human capital development in selected 18 African countries and found that remittance improves the joint measures of human capital and its effects on access to education.
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A spatial Approach to the Link between Remittances and Regional Growth in Mexico
Marcos Valdivia López,Fernando Lozano Ascencio +1 more
- 06 Jan 2010
TL;DR: In this paper, the authors studied the link between the inflow of remittances from international migrants and Mexico's regional growth in recent years and highlighted the presence of a strong polarization in the regional behavior of the remittance/gdp ratio.
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Remittance Inflows to Nepal: Economic Impact and Policy Options
TL;DR: In this article, a gamut of policy measures have been taken by the concerned authorities for encouraging remittances through the banking channel, more needs to be done to encourage remittance through the bank channel.
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The effects of labour migration on rural household production in inland China: Do landform conditions matter?
TL;DR: In this article, the authors explored empirically how variations in regional landform conditions configure the effect of labour migration on rural household production using the data from a 2013 survey of migration intentions among rural labourers in China.
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