Literature Review on Migration and Remittances Development

Christidis, Les (2008): Literature Review on Migration and Remittances Development. Published in: Pacific Journal of Migration and Development , Vol. 17, No. 1 (2008): pp. 1-25.

Abstract

In this article I have presented the kernel of the migration literature on remittances. I started from their three most debated features: stability, cyclicality and sustainability. I then moved to the motives driving remittances and, finally, their relationship with development. Both sustainability and cyclicality are the most controversial issues, as they are probably the most critical in terms of economic development. The former is fundamental from an endogenous point of view. In terms of dynamic convergence, if sustainability holds, less financial developed countries could redeem themselves fostering riskier and more productive investments, ‘substituting’ their liquidity constraints with pro-cyclical remittances. On the other hand, from a ‘brain gain’ perspective, if the inverse relation betIen the time spent abroad and intention to remit is going to be confirmed in future works, the ‘brain circulation could be beneficial both from a human capital and a remittances point of view.

• Item Type: MPRA Paper
• Language: English
• Keywords: migration, diaspora, remittances, development, household, transnationalism
• Subjects: J - Labor and Demographic Economics > J0 - General; J - Labor and Demographic Economics > J0 - General > J01 - Labor Economics: General; J - Labor and Demographic Economics > J0 - General > J08 - Labor Economics Policies; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J61 - Geographic Labor Mobility ; Immigrant Workers; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J62 - Job, Occupational, and Intergenerational Mobility

References

Adams, R.H. (2000). Remittances and Poverty in Ghana. World Bank Policy Research Working Paper No. 3838, 1-43.

Adams, R.H. (2003). International Migration, Remittances and the Brain Drain: A Study of 24 Labor-Exporting Countries. World Bank Policy Research Working Paper No. 3069, 1-29.

Adams, R. H., & Page, J. (2003). International Migration, Remittances and Poverty in Developing Countries. World Bank Policy Research Working Paper No. 3179, 1-37.

Agarwal, R., & Horowits, A. (2002). Are International Remittances Altruism or Insurance? Evidence from Guyana Using Multiple Migrant Households. World Development, 30(11), 2033-2044.

Amuedo-Dorantes, C., & Pozo, S. (2006). Remittances as Insurance: Evidence from Mexican Immigrants. Journal of Population Economics, 19, 227- 254.

Beine, M., Docquier, F., & Rapoport, H. (2001). Brain Drain and Economic Growth: Theory and Evidence. Journal of Development Economics, 64, 275-289.

Bouhga-Hagbe, J. (2006). Altruism and Workers’ Remittances: Evidence from Selected Countries in the Middle East and Central Asia. IMF Working Paper No. 06/130, IMF Middle East and Central Asia Dept, 1-29.

Bouhga-Hagbe, J. (2004). A Theory of Workers’ Remittances with an Application to Morocco. IMF Working Paper No. 04/194, IMF Middle East and Central Asia Dept. 1-35

Brown, R. (1997). Estimating Remittance Functions for Pacific Island Migrants. World Development, 25(4), 613-626.

Bugamelli, M., & Paterno, F. (2005). Do Migrants’ Remittances Reduce the Probability of Financial Crises in Emerging Markets? Bank of Italy, Research Dept.1-20.

Burgess, R., & Haksar, V. (2005). Migration and Foreign Remittances in the Philippines. IMF Working Paper No. 05/111, IMF Asia and Pacific Dept. 1-18.

Carrington, W. J., Detragiache, E., & Vishwanath, T. (1996). Migration with Endogenous Moving Costs. American Economic Review, 86(4), 909-30

Chami, R., Cosimano, T. F., & Gapen, M. T. (2006). Beware of Emigrants Bearing Gifts: Optimal Fiscal and Monetary Policy in the Presence of Remittances. IMF Working Paper No. 06/61, IMF Institute, 1-51.

Chami, R., Fullenkamp, C., & Jashjah, S. (2003). Are Immigrant Remittance Flows a Source of Capital for Development? IMF Working Paper No. 03/189, IMF Institute, 1-47.

Commander, S., Kangasniemi, M., & Winters, L. A. (2003). The Brain Drain: Curse or Boon? IZA Discussion Paper No. 809, 1-34.

Cox E. A., & Ureta, M. (2003). International Migration, Remittances, and Schooling: Evidence from El Salvador. Journal of Development Economics. 72(2), 429-461.

Cuc, M., Lundback, E., & Ruggiero, R. (2005). Migration and Remittances in Moldova. International Monetary Fund Publication, Washington.

Desai, M. A., Kapur, D., & Mchale, J. (2001). The Fiscal Impact of the Brain Drain: Indian Emigration to the U.S. Conference Draft, Prepared for the Third Annual NBERNCAER Conference on December 17-18, 1-57.

Devorets, D. J., & Vadean, F.P. (2005). A Model of Foreign Born Transfers: Evidence from Canadian Micro Data. August, Conference Draft, Discussed For The Xviii Villa Mondragone International Economic Seminar On Europe: A New Economic Agenda?26/06/2006-27/06/2006, Villa Mondragone, Frascati, Roma, 1-41

Djajic, S. Ed. (2001). International Migration: Trends, Policies and Economic Impact. Routledge Contemporary Economic Policy Issues, London Routledge.

Djajic, S. (1998). Emigration and Ilfare in an Economy with Foreign Capital. Journal of Development Economics, 56(2), 1998, 433-445.

Docquier, F., & Marfouk, A. (2004). Measuring the International Mobility of Skilled Workers (1990-2000). World Bank Policy Research Working Paper No. 3381, 1-37.

Docquier, F., & Rapoport, H. (2003). Remittances and Inequality: A Dynamic Migration Model. BAR-ILAN Department of Economics Working Paper, 1-30.

El-Sakka, M., & Mcnabb, R. (1999). The Macroeconomic Determinants of Emigrant Remittances. World Development, 27(8), 1493-1502.

Faini, R. (2006). Remittances and the Brain Drain. IZA Discussion Paper No. 2155, 1-19.

Faini, R. (2005). Does The Brain Drain Boost Growth? Preliminary Version, February,1-22.

Faini, R. (2004). Trade Liberalization in a Globalizing World. IZA Discussion Paper No. 1406, November, 1-39.

Faini, R. (2002). Migration, Remittances and Growth. Preliminary Version, September, 1-21.

Fargue, P. Ed. (2006). Mediterranean Migration 2005 Report. Robert Schuman Centre for Advanced Studies, European University Institute, Florence.

Freund, C., & Spatafora, N. (2005). Remittances: Transaction Costs, Determinants, and Informal Flows. World Bank Policy Research Working Paper No. 3704, September, 1-42.

Galor, O., & Stark, O. (1990). Migrants’ Savings, the Probability of Return Migration and Migrants’ Performance. International Economic Review, 31(2), 463-467.

Gerard-Varet, L. A., Kolm, S. C., & Mercier-Ythier, J. Eds. (2000). The Economics of Reciprocity, Giving and Altruism. Basingstoke Macmillan in Association with the International Economic Association.

Ghosh, B. Ed. (2006). Migrants’ Remittances and Development: Myths, Rhetoric and Realities. International Organization for Migration Publication, Geneva.

Giuliano, P., & Ruiz-Arranz, M. (2006). Remittances, Financial Development, and Growth. IZA Discussion Paper No. 2160, 1-37.

Glytsos, N. P. (2002). The Role of Migrant Remittances in Development: Evidence from Mediterranean Countries. International Migration, 40(1), 5-26.

Gupta, P. (2005). Macroeconomic Determinants of Remittances: Evidence from India. IMF Working Paper No. 05/224, December, IMF European Dept., 1-21.

Hanson, G. H., & Woodruff, C. (2002). Emigration and Educational Attainment in Mexico. Mimeo, University Of California at San Diego, 1-38.

Hoddinott, J. (1994). A Model of Migration and Remittances Applied to Istern Kenya. Oxford Economic Papers, 46(3), 459-476.

IADB. (2006). Remittances 2005. Promoting Financial Democracy. Multilateral Investment Fund Report, March, Washington, 1-55.

IMF. (2005). World Economic Outlook. Washington, April.

IMF. (2004). Balance of Payments Statistics Yearbook. Washington.

IMF. (1996). Balance of Payments Compilation Textbook. Washington.

IMF. (1995). Balance of Payments Compilation Guide. Washington.

Kaminsky, G., Reinhart, C. M., & Vegh, C. A. (2004). When It Rains, It Pours: Procyclical Capital Flows And Macroeconomic Policies. 19th Conference on Macroeconomics (Organized By M. Gertler and K.S. Rogoff), August 13, 1-37.

Kireyev, A. (2006). The Macroeconomics of Remittances: The Case of Tajikistan. IMF Working Paper No. 06/2, January, IMF Policy Development and Review Dept. 1-26.

Leon-Ledesma, M., & Piracha, M. (2004). International Migration and the Role of Remittances in Istern Europe. International Migration, 42(4), 65-83.

Lowell, B. L., & DeLa Garza, R.O. (2000). The Development Role of Remittances in U.S. Latino Communities and in Latin American Countries. A Final Project Report, Inter-American Dialogue, 1-32.

Lucas, R. E. B. (2004). International Migration to the High Income Countries: Some Consequences for Economic Development in the Sending Countries. Boston University (Mimeo), 1-43.

Lucas, R. E. B., & Stark, O. (1985). Motivations to Remit: Evidence from Botswana. Journal of Political Economy, 93(5), 901-918.

Mannan, K. A., & Wei, G. K. (2008). Why Remit? The Case of Bangladesh. Asian Migration and Diaspora Studies, 14(2), 55-75.

Mannan, K. A., & Wei, G. K. (2007). Who Remits? The Case of Bangladesh. Asian Migration and Diaspora Studies, 13(2), 43-60.

Mannan, K. A., & Wei, G. K. (2006). International Remittances, Household Spending, and Investment: A Case Study of Bangladesh. Asian Migration and Diaspora Studies, 12(2), 36-54.

Mannan, K. A., & Kozlov, V. V. (2005). The Impact of Remittances on Labour Force in Bangladesh: An Empirical Analysis of Labour Participation and Employment. Russian Management Journal, 16(2), 51-74.

Mannan, K. A., & Krueger, A. O. (2004). The Impact of Remittances on Household: An Empirical Study on the Bangladeshi Diaspora in United Kingdom. Russian Journal of Economic and Social Science, 12(2), 48-74.

Mannan, K. A., & Kozlov, V. V. (2003). Bangladeshi Migrants in Italy: An Analysis of Survival Strategies and Job Segmentations. Russian Management Journal, 14(2), 37-57.

Mannan, K. A., & Krueger, A. O. (2002). Why do Italy? A Comparative Analysis of Bangladeshi Migrants into Five European Countries. Russian Journal of Economic and Social Science, 10(2), 30-48.

Mannan, K. A., & Kozlov, V. V. (2001). The Cost-Benefit Analysis of International Migration: Modelling and Empirical Study betIen Bangladesh and Italy. Russian Management Journal, 12(2), 29-52.

Mannan, K. A., & Krueger, A. O. (2000). The Dynamics of International Migration: A Three Step Empirical Model of Bangladeshi Migrants in Italy. Russian Journal of Economic and Social Science, 8(2), 34-58.

Mannan, K. A., & Kozlov, V. V. (1999). Migration Decision-Making among Bangladeshi Migrants in Italy: A Combined Model Approach. Russian Management Journal. 10(2), 19-42.

Mannan, K. A., & Krueger, A. O. (1998). Social Capital and Networks Role in Migrants’ Labour Market Outcomes at Destination: A Study of Bangladeshi Migrants in Italy. Russian Journal of Economic and Social Science, 6(2), 54-74.

Mannan, K. A., & Kozlov, V. V. (1997). Transits and Transnational Route of Migration and Trafficking: A Journey from Bangladesh to Italy via Moscow, Russia. Russian Management Journal. 8(2), 27-48.

Mannan, K. A., & Krueger, A. O. (1996). Sustainability of the New Economy: An Empirical Study of Bangladeshi Migrants in Moscow. Russian Journal of Economic and Social Science. 4(2), 65-80.

Mannan, K. A., & Kozlov, V. V. (1995). Socio-economic life style of Bangladeshi man married to Russian girl: An analysis of migration and integration perspective. Russian Management Journal. 6(1), 25-44.

Massey, D.S. And Basem, L. (1992). Determinants of Savings, Remittances, and Spending Patterns among U.S. Migrants in Four Mexican Communities. Sociological Inquiry, 62(2), 185-207.

Mccormick, B., & Wahba, J. (1996). The Brain Drain, Remittances and Economic Development. Discussion Paper in Economics and Econometrics, February, Univ. Southampton, Dept. of Economics and Econometrics, 1-30.

Mckinnon, R. I. (1973). Money and Capital in Economic Development. The Brookings Institution.

Merkle, L., & Zimmermann, K. F. (1992). Savings, Remittances and Return Migration. Economic Letters, 38(1), 77-81.

Mishra, P. (2006). Emigration and Brain Drain: Evidence from the Caribbean. IMF Working Paper No. 06/25, January, IMF Istern Hemisphere Dept. 1-39.

Munshi, K. (2003). Networks in the Modern Economy: Mexican Migrants in the U.S. Labor Market. Quarterly Journal of Economics, 118(2), 549-599.

OECD. (2005). Migration, Remittances and Development. OECD Publication, Paris.

Omarini, A. (2006). IL Migrant Banking. Esigenze Della Clientela Immigrata E Modelli Di Servizio Per L’offerta. Bancaria Editrice, Roma.

Orozco, M. (2004). The Remittance Marketplace: Prices, Policy and Financial Institutions. Pew Hispanic Center Report, June, Washington, 1-45.

Ozden, C., & Schiff, M. Eds. (2006). International Migration, Remittances & the Brain Drain”, No. 33988, World Bank and Palgrave Macmillan Publication, Washington.

Piotrowski, M. (2006). The Effect of Social Networks at Origin Communities on Migrant Remittances: Evidence from Nang Rong District. European Journal of Population, 22(1), 67-94.

Poirine, B. (1997). A Theory of Remittances as an Implicit Family Loan Arrangement. World Development, 25(4), 589-611.

Puri, S., & Ritzema T. (1999). Migrant Worker Remittances, Micro-Finance and the Informal Economy: Prospects and Issues. ILO Working Paper No. 21, ILO Social Finance Unit, 1-41.

Quibria, M. G. (1997). International Migration, Remittances and Income Distribution in Source Country: A Synthesis. Bulletin of Economic Research, 49(1), 29-46.

Rapoport, H., & Docquier, F. (2004). The Economics of Migrants’ Remittances. Working Paper No. 236, December, Stanford Center for International Development, Stanford University, 1-81.

Ray, D. (1998). Development Economics. Princeton University Press, Princeton, New Jersey.

Roberts, K., & Morris, M. (2003). Fortune, Risk, and Remittances: An Application of Option Theory to Participation in Village-Based Migration Networks. International Migration Review, 37(4), 1252-1282.

Sayan, S. (2006). Business Cycles and Workers’ Remittances: How Do Migrant Workers Respond to Cyclical Movements of GDP at Home? IMF Working Paper No. 06/52, February, IMF Institute, 1-21.

Siddiqui, T., & Abrar, C.R. (2003). Migrant Worker Remittances and Micro-Finance in Bangladesh. ILO Working Paper No. 38, September, ILO Social Finance Programme, 1-111.

Stark, O. (2005). The New Economics of the Brain Drain. World Economics, 6(2), 1-5.

Straubhaar, T. (2005). Determinants of Workers’ Remittances. The Case of Turkey. Emerging Markets Finance and Trade, 41(3), 53-69.

Suro, R. (2003). Remittance Senders and Receivers: Tracking the Transnational Channels. Pew Hispanic Center Report, November 24, Washington, 1-19.

Suro, R., Bendixen, S., LoIll, B. L., & Benavides, D. C. (2002). Billions in Motion: Latino Immigrants, Remittances and Banking. Pew Hispanic Center and Multilateral Investment Fund Report, Washington, 1-28.

Taylor, J. E. (1999). The New Economics of Labor Migration and the Role of Remittances in the Migration Process. International Migration, 37(1), 63-86.

Terry, D. F., Jiminez-Ontiveros, F., & Wilson, S. R. Eds. (2004). Beyond Small Change: Migrants, Remittances and Economic Development. Inter-American Development Bank Publication, John Hopkins University Press, Washington.

Thieme, S. (2003). Savings and Credit Associations and Remittances: The Case of Far Ist Nepalese Labour Migrants in Delhi, India”, ILO Working Paper No. 39, July, ILO Employment Dept., Social Finance Programme, 1-54.

Thieme, S., & Wyss, S. (2005). Migration Patterns and Remittance Transfer in Nepal: A Case Study of Sainik Basti in Istern Nepal. International Migration, 43(5), 59-98.

Tunkay Aydas, O., Metin-Ozcan, K., & Neyapti, B. (2005). Determinants of Workers’ Remittances. The Case of Turkey. Emerging Markets Finance and Trade, 41(3), 53-69.

United Nations. (2002). Report on the International Conference on Financing for Development. The Conference held in Monterrey in 2001 already denounced this claim, Monterrey, Mexico 18-22 March.

World Bank. (2006). Global Economic Prospects. Economic Implications of Remittances and Migration. No. 34320, World Bank Publication.

World Bank. (2004). Global Development Finance 2003-Striving For Stability in Development Finance. World Bank Publication.