The role of urban‐to‐rural remittances in rural development

One of the effects of rural‐to‐urban migration is the return of money and resources by the migrants to their respective home areas. Recently, it has been argued by several authors that such remittances represent a significant means for removing supply constraints to improved productivity in agriculture. In this paper the authors examine critically the available evidence on the rural impact of remittances. Subjects covered in the paper include the extent of the urban‐to‐rural remittances, the determinants of such financial flows and the use made in the rural areas of the money received. The paper concludes there is little evidence that urban‐rural remittances have been a significant means to rural economic development.     

The Impact of International Remittances on Child Outcomes and Household Expenditures in Nepal

Nepal has one of the highest ratios of international remittances to gross domestic product in the world. We examine whether the massive inflow of international remittances affects child schooling, child labour and household expenses. Controlling extensively for a host of observed characteristics of households and migrants, and using an instrumental variable approach, this research finds no effect of international remittances on child education or child labour in Nepal. However, it does find a significant increase in non-food expenditures, including education spending, due to international remittances. Despite increased expenditure on child education, educational outcomes are not improving because of international remittances.     

The shadow value of migrant remittances,income and inequality in a household‐farm economy

This article offers econometric evidence that income remittances sent home by family migrants stimulate household‐farm incomes indirectly by relieving credit and risk constraints on household‐farm production. A high but unequally distributed shadow value of migrant remittances appears to reinforce an equalising direct effect of remittances on the income distribution across a sample of household‐farms in rural Mexico.     

Remittances in Nepal: Boon or Bane?

Nepal is one of the highest recipients of remittances (percentage of GDP) in the world. For a small land-locked economy battered by a decade-long Maoist insurgency (1996–2006), prolonged political instability, slow growth rate and large exodus of youths for employment overseas, high inflow of remittances bears a huge significance both at micro and macro levels. Exploring various facets of high migration and remittances, this article shows remittance-induced Dutch disease effects and policy laxity to improve investment climate in Nepal. Since it is costly to sterilise the impact of remittances each year, it might be prudent to learn to live with it and gradually channel remittances to productive usages with a goal to boost productivity.     

Remittances and Chain Migration: Longitudinal Evidence from Bosnia and Herzegovina

Abstract

Most of the literature on remittances focuses on their implications for the welfare of family members in the country of origin and disregards their role as facilitator of chain migration. We address this issue with the use of longitudinal data from Bosnia and Herzegovina, one of the primary exporters of migrants and recipients of remittances in the world. We find that remittances have a significant positive impact on the migration prospects of their recipients. Better-endowed people are most likely to migrate, which highlights a potential negative implication of migration and remittances.     

Remittances and Happiness of Migrants and Their Home Households: Evidence Using Matched Samples

This paper explores how remittances influence happiness among migrants and their households of origin. It is based on a novel data set of matched samples of Bangladeshi migrant households (living in the UK and Malaysia) and their origin families in Bangladesh. Empirical findings suggest that remittances play a significant role in stimulating migrants’ happiness. We also find that the households of origin’s life satisfaction not only depends on receiving remittances from the emigrants, but also other factors such as number of migrants from the household living abroad and the migrants’ country of destination.     

Collective Remittances and Transnational Coproduction: the 3 × 1 Program for Migrants and Household Access to Public Goods in Mexico

Migrant hometown associations (HTAs) are mobilizing collective remittances to improve social welfare in their countries of origin. This paper assesses the effect of transnational coproduction of public goods in migrants’ places of origin by studying the 3?×?1 Program for Migrants. The 3?×?1 Program is a national social spending program in which the Mexican local, state, and federal government matches HTAs’ collective remittances to improve public services through cross-border public–private partnerships. The statistical analysis across municipalities that do and do not participate in the 3?×?1 Program shows that coproduction improves citizens’ access to public sanitation, drainage, and water, although not electricity. Moreover, a negative and statistically significant interaction term between 3?×?1 Program expenditures and family remittances reveals a substitution effect: in the presence of transnational coproduction, migrant households are less likely to improve public goods using family remittance resources, but in the absence of 3?×?1 Program participation they continue to improve their hometowns with family remittances. This research offers a theoretical mechanism and supporting empirical evidence of an important kind of intermediary institution improving social welfare in migrant places of origin.     

Gender and rural livelihoods in Kenya

This article considers the implications for gender relations of different rural livelihoods. While many rural areas in Kenya have been drawn into intensive commercial production, others, formerly dependent on remittances from migrant labour, have seen these diminish. Recent empirical studies of gender and livelihoods in Kenya are compared. Commercial production and the drying up of remittances set up quite different processes in rural households. These may lead to greater corporateness, to conflict or even to fragmentation. The outcome depends on the potential rewards of co‐operation, but also on domestic authority relations and on ideologies of common or divided interest.     

Do Remittances Diminish Social Violence?

This paper represents the first attempt to formalise the relationship between remittances and social violence by developing a model that predicts that migrants’ remittances lead to the reduction of social violence in the recipient economy under the condition that remittances increase the average product of labour. Using homicide data as an indicator of social violence, we tested our model’s prediction. Controlling for the endogeneity problem with appropriate instruments, we found that remittances tend to reduce social violence. We performed sensitivity analysis on remittances in the empirical specification and found it robust with an unchanged negative sign.     

International migration,remittances and development: myths and facts

The debate on international South – North labour migration tends to focus on the receiving end of migration. This bias obscures a proper understanding of the developmental causes and consequences of migration at the sending end. The reciprocal migration – development relationship is examined through the discussion of seven migration ‘myths’. Because of its profound developmental roots, it is useless to think that migration can be halted or that aid and trade are short-cut ‘solutions’ to immigration. Migrant remittances contribute significantly to development and living conditions in sending countries. Nevertheless, the recent ‘remittance euphoria’ is not justified, because unattractive investment environments and restrictive immigration policies which interrupt circular migration patterns prevent the high development potential of migration from being fully realised. Although specific policies can enhance this potential through facilitating remittance transfers and investments, the key lies in encouraging circular migration. Instead of uselessly and harmfully trying to stop inevitable migration, immigration policies allowing for freer circulation can, besides increasing migration control, enhance the vital contribution of migrants to the development of their home countries.     

Remittances and the Brain Drain: Evidence from Microdata for Sub-Saharan Africa

Based on unique microdata from five Sub-Saharan African countries that contain comprehensive information on both migrants and their households at the origin country, we investigate the effect of migrants’ education on their remittance behaviour. Our results reveal that migrants’ education has no impact on the likelihood of sending remittances, but a positive effect on the amount of money sent, conditional on remitting. The latter effect holds for internal migrants and migrants in non-OECD countries, while it vanishes for migrants in OECD destination countries once characteristics of the origin household are controlled for.     

Private monetary transfers in rural china: Are families altruistic?

Monetary transfers between relatives may be motivated by altruism, or they may represent payments for services rendered. Data from a large 1988 household survey are used to test these hypotheses and to study the size and direction of transfers in rural China. The analysis suggests that altruism alone cannot explain the observed transfers and that exchange may be involved. Most of the money flows appear to be transfers from adult children to elderly parents and remittances from migrants. Child care is likely to be one of the main services that parents render to adult children in exchange for money.     

Remittances,Banking Status and the Usage of Insurance Schemes

Empirical evidence that migrants send home more remittances after disasters raises the question of whether remittances are used to self-insure, substituting for both formal and informal insurance. We investigate this question using a unique data set on the usage patterns of financial services by households in South Africa. We show that the likelihood that a respondent has a formal funeral cover increases with income and banking status. However, it is lower for individuals receiving remittances, which supports the idea that remittances act as self-insurance. We also show that other risk management strategies influence the purchasing of formal funeral cover. Finally, we find that determinants of informal insurance differ from those of formal insurance.     

Migrants’ intentions to return home and capital transfers: A study of Tongans and Samoans in Australia

This article examines the attributes of migrants from the Pacific island states of Tonga and Samoa living in Australia to assess the extent to which return migrants could contribute to the human and physical capital stock of the migrant‐sending countries. It also examines the impact of intention to return on remittances and asset accumulation. The study finds that very few migrants plan to return home and very little evidence that those who plan to return embody significant human capital (education, experience and skills). Intention to return may be important, nevertheless, since those who plan to return remit significantly more than those that do not and also accumulate far more physical capital at home than those that do not intend to return.     

Remittances,Poverty, Inequality and Welfare: Evidence from the Central Plateau of Burkina Faso

This paper applies Gini and concentration coefficient decomposition as well as the Foster-Greer-Thorbecke poverty index and the Stark-Yitzhaki welfare index to new data from four villages in Burkina Faso, to compare the marginal effects of remittances from intercontinental and intra-African migration on inequality, poverty and social welfare. Evidence is found that intra-African remittances reduce inequality while intercontinental remittances have the opposite effect. Also, it is found that although remittances from intercontinental migration are associated with much lower incidence, depth and severity of poverty, the marginal impact of remittances from this form of migration on social welfare is limited because recipients do not include the rural poor.     

Remittance Behaviour of Forced Migrants in Post-Apartheid South Africa

This paper looks at the determinants of South-South remittances. An original dataset of African migrants living in Johannesburg is used. As South Africa attracts both economic and forced migrants, we focus on the impact of the reason of emigration (violence versus economic concerns) on migrants’ remittance behaviour. On the extensive margin, the results show that leaving a home country for reasons of violence decreases the probability of remitting to the home country. On the intensive margin, transferred amounts do not differ according to whether the migrant was forced to migrate or not. When the migrant has decided to remit, it is more his/her current conditions in the host country and traditional factors (income, education, sex, etc.) that determine the amounts transferred. Our results are robust when restricting the definition of forced migration.     

Sanitation and Religion in South Asia: What Accounts for Differences across Countries?

Exposure to open defecation has serious consequences for child mortality, health, and human capital development. South Asia has the highest rates of open defecation worldwide, and although the incidence declines as household income rises, differences across South Asian countries are not explained by differences in per capita income. The rate of open defecation in sub-national regions of Bangladesh, India and Nepal is highly correlated with the fraction of the population that identifies as Hindu, in part because certain rituals of purity and pollution discourage having latrines in close proximity to one’s home. Almost all open defecation occurs in rural areas, and this paper estimates how much the rate could be reduced if rural households in regions that have a higher fraction of Hindus, where open defecation is still common, altered their behaviour to reflect that of non-Hindu households in regions that are predominantly non-Hindu, where the rate of open defecation is much lower. Using nonparametric reweighting methods, this paper projects that rural open defecation in Bangladesh, India, and Nepal could be reduced to rates of between 6 and 8 per cent, compared to the prevailing level of 65 per cent.     

French Caribbean organizations and the ‘Black question’ in France

Abstract

Collective remittances are a particular kind of flow, which is gaining more and more attention. It puts into light the role of diaspora associations in promoting the development of the origin countries. The aim of the article is to analyze how diaspora associations cope with development issues and the impacts of these activities in terms of migrants' new forms of citizenship. It draws attention on the relationship between diaspora and transnationalism stressing that, nowadays, the immaterial dimension of ethnic belonging encompasses also a material dimension made of cross-border connections; thus, allowing migrants to participate on the both shores of migration. Using the concept of the Political Opportunity Structure, the article shows the role played by the host country on the way migrants organize themselves and on how they act as citizens at home by engaging in development actions. The comparative approach puts into evidence that the different characteristics of Ghanaian migrants in Italy and in the UK shape transnational development actions but in a different way than one would expect: the relative lack of integration seems to stimulate migrants to better development actions at home since, in so doing, they can be recognized as actors also in the place where they live.     

Migrants’ Remittances and Home Country Elections: Cross-National and Subnational Evidence

Elections in developing countries have increasingly become international events. Previous scholarship identifies many examples in which migrants from developing countries have played a role in financing elections in their home countries and provides cross-national evidence that migrants increase remittances in election years. However, previous cross-national analyses have been limited by their reliance on annual national-level data. This article provides statistical analyses of quarterly subnational data of remittance inflows to Mexican states and new monthly national-level data on remittance inflows for nine countries. These analyses demonstrate that political remittance cycles appear in the quarter prior to an election, can exist both for national and subnational elections, and are influenced by both economic conditions in migrants’ host countries and political conditions in their home countries.     

Remittances,Bonds and Bridges: Remittances and Social Capital in Burundi

This study explores the effects of remittances on households’ structural social capital in urban Burundi. Distinctions are made between bonding and bridging social capital, referring to intra- versus inter-network ties of family members and friends. The results demonstrate that remittance-receiving households invest more in bridging social capital by participating in organisations (donating time), but make fewer monetary contributions, compared to non-receiving households. Remittances have mixed effects on bonding social capital: receiving households give significantly less gifts to family members and friends, but are more likely to send internal remittances, compared to non-receivers. The implications of these findings for post-conflict development are discussed.