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Part III ‐ International Migrant Remittances and their Role in Development

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Abstract:

Migrant remittances are a steadily growing external source of capital for developing countries. While foreign direct investments and capital market flows fell sharply in the last years due to the recession in the high income countries, migrant remittances continued to grow, reaching USD 149.4 billion in 2002. The importance of remittances in compensating the human capital loss of developing countries through migration and their potential in boosting economic growth was already recognised in the beginning of the 1980s. A wide range of issues related to remittances became the subject of political debate, as well as of more in‐depth research. These topics include the determinants of remittances, the transfer channels used and their economic impact on the remittance receiving countries. Over the past years, partly because of the sharp increase in remittance flows, the research on these issues gained momentum, resulting in a mushrooming of scientific literature

Document Type: Review Article

Publication date: February 1, 2007

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