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The development impact of workers' remittances in Latin America : Main findings (English)

Workers' remittances have become a major source of financing for developing countries, and are especially important in Latin America and the Caribbean (LAC), which is at the top of the ranking of remittances, receiving regions in the world. Remittances in LAC represent about 70 percent of Foreign Direct Investment and are five times larger than Official Development Assistance. To a large extent this is a recent phenomenon, which is reflected in the scarcity of standardized data both at the aggregate and the microeconomic level. In fact, two decades ago, remittances to LAC represented only one tenth of their current value, in real terms. Not surprisingly, during recent years development practitioners in the region have grown increasingly interested in understanding the nature, potential development impact and policy implications of remittances flows.

Details

  • Document Date

    2006/08/25

  • Document Type

    Foreign Trade, FDI, and Capital Flows Study

  • Report Number

    37026

  • Volume No

    1

  • Total Volume(s)

    2

  • Country

    Latin America,

  • Region

    Latin America & Caribbean,

  • Disclosure Date

    2006/09/21

  • Disclosure Status

    Disclosed

  • Doc Name

    Main findings

  • Keywords

    Finance, Private Sector & Infrastructure;access to financial service;impact of migration on remittance;migrant;real exchange rate appreciation;real exchange rate misalignment;household income after remittance;labor force participation;magnitude of remittances flow;payment and settlement system;remittance on poverty reduction;population living in poverty;Migration and Remittances;Poverty & Inequality;country case study;household receiving remittance;labor market performance;remittance on household;per capita basis;remittance on growth;cross country econometrics;reduction in poverty;human capital investment;household survey data;remittance receiving country;representative household surveys;cross country comparison;benefit from remittance;gross national income;macroeconomic policy environment;impact of remittance;funds across border;macroeconomic policy shock;remittance investment;stock of migrant;volume of remittance;national poverty line;access to remittance;access to deposit;child in school;human capital outcomes;households with remittance;cost of remittance service;effect of remittance;financial sector development;distribution of remittance;recipient of remittance;local poverty line;remittance flow;labor supply;home country;home countries;recipient countries;schooling level;migration flow;poverty headcount;remittance inflow;remittance recipient;negative effect;public transfer;health outcome;educational level;recipient household;remittance income;Brain Drain;college graduate;regulatory environment;dutch disease;important policy;saving rate;extreme poverty;external competitiveness;fiscal policy;multilateral initiative;migrant family;family preference;Fiscal policies;high remittance;positive impact;country remittance;methodological approach;moderate poverty;country population;data limitation;poverty impact;economic integration;high share;education level;expenditure pattern;household saving;macroeconomic crisis;domestic investment;increased rate;dynamic effect;household welfare;younger generation;social implications;health knowledge;payment system;school enrollment;migrant population;econometric analysis;female migrant;poor household;credit constraint;income inequality;demographic characteristic;net effect;macroeconomic data;average change;inequality decomposition;unrealistic assumption;market transparency;general equilibrium;monetary poverty;common international;present study;investment rate;bank deposit;consumption smoothing;positive growth;income increase;development policy;remittance sender;significant attention;financial flow;Regional Studies;macroeconomic environment;remittance system;product market;economic reform;financial intermediaries;send remittance;remittance channel;remittance market;regulatory requirement;research assistance;poverty gap;expenditure share;household expenditure;Child Health;income quintile;crowding out;level of remittance;transaction cost;collaborative effort;potential investment;remittances transfer;positive shock;Exchange Rates;educational distribution;regulatory barrier;census data;migration pattern;corrective action;country ranking;absolute remittance;income dimension;natural way;output volatility;policy option;empirical evidence;steady flow;

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Citation

The development impact of workers' remittances in Latin America : Main findings (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/751991468045065721/Main-findings